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Illinois Compiled Statutes

Information maintained by the Legislative Reference Bureau
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

INSURANCE
(215 ILCS 5/) Illinois Insurance Code.

215 ILCS 5/540

    (215 ILCS 5/540) (from Ch. 73, par. 1065.90)
    Sec. 540. The plan of operation shall do the following as enumerated in Sections 540.1 through 540.9.
(Source: P.A. 77-305.)

215 ILCS 5/540.1

    (215 ILCS 5/540.1) (from Ch. 73, par. 1065.90-1)
    Sec. 540.1. The plan of operation shall establish the procedures whereby all the powers and duties of the Fund under Sections 537.1 through 537.9 will be performed.
(Source: P.A. 82-210.)

215 ILCS 5/540.2

    (215 ILCS 5/540.2) (from Ch. 73, par. 1065.90-2)
    Sec. 540.2. The plan of operation shall establish procedures for handling assets of the Fund.
(Source: P.A. 77-305.)

215 ILCS 5/540.3

    (215 ILCS 5/540.3) (from Ch. 73, par. 1065.90-3)
    Sec. 540.3. The plan of operation shall establish the amount and method of reimbursing members of the board of directors under subsection (c) of Section 536.
(Source: P.A. 82-210.)

215 ILCS 5/540.5

    (215 ILCS 5/540.5) (from Ch. 73, par. 1065.90-5)
    Sec. 540.5. (a) A covered claim, for other than unearned premium, is a claim which appears on the books and records of the insolvent company as of the date of the Order of Liquidation or a claim for which notice is given in writing to the liquidator of the insolvent company's domiciliary state or to an ancillary receiver in this State, if any, or to the Fund or its agents prior to the earlier of the last date fixed for the timely filing of proofs of claim in the domiciliary liquidation proceedings or 18 months after the entry of the order of liquidation. The liquidator or ancillary receiver in this State, if any, shall periodically submit a list of claims to the Fund or similar organization in another state.
    (b) The Fund shall establish procedures by which unearned premium claims are to be determined and paid as covered claims.
(Source: P.A. 85-576.)

215 ILCS 5/540.6

    (215 ILCS 5/540.6) (from Ch. 73, par. 1065.90-6)
    Sec. 540.6. The plan of operation shall provide that any member company aggrieved by any final action or decision of the Fund may appeal to the Director within 30 days after the action or decision.
(Source: P.A. 77-305.)

215 ILCS 5/540.7

    (215 ILCS 5/540.7) (from Ch. 73, par. 1065.90-7)
    Sec. 540.7. The plan of operation shall establish the procedures whereby selections for the board of directors will be submitted to the Director.
(Source: P.A. 77-305.)

215 ILCS 5/540.8

    (215 ILCS 5/540.8) (from Ch. 73, par. 1065.90-8)
    Sec. 540.8. The plan of operation shall establish the procedures for disposition of monies reimbursed from the estate of the insolvent company.
(Source: P.A. 85-576.)

215 ILCS 5/540.9

    (215 ILCS 5/540.9) (from Ch. 73, par. 1065.90-9)
    Sec. 540.9. The plan of operation may contain additional provisions necessary or proper for the execution of the powers, duties and obligations of the Fund.
(Source: P.A. 77-305.)

215 ILCS 5/541

    (215 ILCS 5/541) (from Ch. 73, par. 1065.91)
    Sec. 541. The plan of operation may provide that any or all powers and duties of the Fund, except those under Sections 537.6 and 538.3 may be delegated to a corporation, association, or other organization which performs or will perform functions similar to those of this Fund, or its equivalent, in 2 or more states. A delegation under this Section shall take effect only with the approval of both the board of directors and the Director, and may be made only to a corporation, association, or organization which extends protection not substantially less favorable and effective than that provided by this Article.
(Source: P.A. 80-827.)

215 ILCS 5/543

    (215 ILCS 5/543) (from Ch. 73, par. 1065.93)
    Sec. 543. Duties and obligations of the Director.
    The Director shall have the duties and obligations enumerated in Sections 543.1 through 543.3.
(Source: P.A. 77-305.)

215 ILCS 5/543.1

    (215 ILCS 5/543.1) (from Ch. 73, par. 1065.93-1)
    Sec. 543.1. The Director shall serve a copy of the complaint seeking an Order of Liquidation with a finding of insolvency against a domestic member company on the Fund at the same time that such complaint is filed with the circuit court or shall forward to the Fund notice of the filing of such a complaint against a foreign or alien member company promptly upon receipt thereof. The Director also shall serve on the Fund a copy of an Order of Liquidation with a finding of insolvency against a domestic member company immediately after it is entered by the circuit court or shall forward to the Fund a copy of such order against a foreign or alien member company promptly upon receipt thereof.
(Source: P.A. 85-576.)

215 ILCS 5/543.2

    (215 ILCS 5/543.2) (from Ch. 73, par. 1065.93-2)
    Sec. 543.2. The Director shall, upon request of the board of directors, provide the Fund with a statement of the net direct written premiums of each member company for the preceding calendar year for which annual statements have been filed with the Director.
(Source: P.A. 77-305.)

215 ILCS 5/543.3

    (215 ILCS 5/543.3) (from Ch. 73, par. 1065.93-3)
    Sec. 543.3. The liquidator of an insolvent company shall notify the policyholders of the insolvent company who are residents of this State of the entry of an Order of Liquidation against the company and of their rights under this Article. Such notification shall be mailed to the last known address of such policyholders, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation shall be sufficient. If the insolvent company is domiciled in another state and the liquidator fails to give notice which satisfies the purposes of this Section, such notice shall be given by the Director as ancillary receiver or if the insolvent company is domiciled in another state and there is no ancillary receiver in this State, the Fund shall give such notice provided the necessary information is made available to the Fund by the liquidator. The form of the notice given by the Director as either liquidator or ancillary receiver shall be submitted to the Fund for its approval prior to mailing or publication.
(Source: P.A. 85-576.)

215 ILCS 5/544

    (215 ILCS 5/544) (from Ch. 73, par. 1065.94)
    Sec. 544. Powers of the Director. The Director shall either (a) suspend or revoke, after notice and hearing pursuant to Sections 401, 402 and 403 of this Code, the certificate of authority to do business in this State of any member company which fails to pay an assessment when due or fails to comply with the plan of operation, or (b) levy a fine on any member company which fails to pay an assessment when due. Such fine shall not exceed 5% per month of the unpaid assessment, except that no fine shall be less than $200 per month.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/545

    (215 ILCS 5/545) (from Ch. 73, par. 1065.95)
    Sec. 545. Effect of paid claims.
    (a) Every insured or claimant seeking the protection of this Article shall cooperate with the Fund to the same extent as such person would have been required to cooperate with the insolvent company. The Fund shall have all the rights, duties and obligations under the policy to the extent of the covered claim payment, provided the Fund shall have no cause of action against the insured of the insolvent company for any sums it has paid out except such causes of action as the insolvent company would have had if such sums had been paid by the insolvent company and except as provided in subsection (d) of this Section. Any person recovering under this Article and any insured whose liabilities are satisfied under this Article shall be deemed to have assigned the person's or insured's rights under the policy to the Fund to the extent of his or her recovery or satisfaction obtained from the Fund's payments.
    (b) The Fund and any similar organization in another state shall be recognized as claimants in the liquidation of an insolvent company for any amounts paid by them on covered claims obligations as determined under this Article or similar laws in other states and shall receive dividends at the priority set forth in paragraph (d) of subsection (1) of Section 205 of this Code; provided that if, at the time that the liquidator issues a cut-off notice to the Fund in anticipation of closing the estate, a reserve has been established by the Fund, or any similar organization in another state, for the amount of their future administrative expenses and loss development associated with unpaid reported pending claims, these reserves will be deemed to have been paid as of the date of the notice and payment shall be made accordingly. The liquidator of an insolvent company shall be bound by determinations of covered claim eligibility under the Act and by settlements of claims made by the Fund or a similar organization in another state on the receipt of certification of such payments, to the extent those determinations or settlements satisfy obligations of the Fund, but the receiver shall not be bound in any way by those determinations or settlements to the extent that there remains a claim in the estate for amounts in excess of the payments by the Fund. In submitting their claim for covered claim payments the Fund and any similar organization in another state shall not be subject to the requirements of Sections 208 and 209 of this Code and shall not be affected by the failure of the person receiving a covered claim payment to file a proof of claim.
    (c) The expenses of the Fund and of any similar organization in any other state, other than expenses incurred in the performance of duties under Section 547 or similar duties under the statute governing a similar organization in another state, shall be accorded priority over all claims against the estate, except as provided for in paragraph (a) of subsection (1) of Section 205 of this Code. The liquidator shall make prompt reimbursement to the Fund and any similar organization for such expense payments.
    (d) The Fund has the right to recover from the following persons the amount of any covered claims (as determined without regard to the exemption in paragraph (iv) of subsection (b) of Section 534.3) and allocated claims expenses which the Fund paid or incurred on behalf of such person in satisfaction, in whole or in part, of liability obligations of such person to any other person:
        (i) any insured whose net worth on December 31 of the
    
year next preceding the date the company becomes an insolvent company exceeds $25,000,000; provided that an insured's net worth on such date shall be deemed to include the aggregate net worth of the insured and all of its affiliates as calculated on a consolidated basis.
        (ii) any insured who is an affiliate of the insolvent
    
company.
    The Fund may also, at its sole discretion and without assumption of any ongoing duty to do so, pay any workers compensation claims or any other third-party claims or any cybersecurity insurance obligations covered by a policy of an insolvent company on behalf of a high net worth insured as defined in paragraph (iv) of subsection (b) of Section 534.3. In that case, the Fund shall recover from the high net worth insured under this Section for all amounts paid on its behalf, all allocated claim adjusted expenses related to such claims, the Fund's attorney's fees, and all court costs in any action necessary to collect the full amount to the Fund's reimbursement under this Section.
(Source: P.A. 103-113, eff. 6-30-23.)

215 ILCS 5/546

    (215 ILCS 5/546) (from Ch. 73, par. 1065.96)
    Sec. 546. Other insurance.
    (a) An insured or claimant shall be required first to exhaust all coverage provided by any other insurance policy, regardless of whether or not such other insurance policy was written by a member company, if the claim under such other policy arises from the same facts, injury, or loss that gave rise to the covered claim against the Fund. The Fund's obligation under Section 537.2 shall be reduced by the amount recovered or recoverable, whichever is greater, under such other insurance policy. Where such other insurance policy provides uninsured or underinsured motorist coverage, the amount recoverable shall be deemed to be the full applicable limits of such coverage. To the extent that the Fund's obligation under Section 537.2 is reduced by application of this Section, the liability of the person insured by the insolvent insurer's policy for the claim shall be reduced in the same amount. If the Fund pays a covered claim without the exhaustion of all other coverage that could have been exhausted under this Section, the Fund shall have an independent right of recovery against each insurer whose coverage was not exhausted in the amount the Fund would not have had to pay if that insurer's coverage had been exhausted first.
    (b) Any insured or claimant having a claim which may be recovered under more than one insurance guaranty fund or its equivalent shall seek recovery first from the Fund of the place of residence of the insured except that if it is a first party claim for damage to property with a permanent location, he shall first seek recovery from the Fund of the location of the property; if it is a workers' compensation claim, he shall first seek recovery from the Fund of the residence of the claimant. Any recovery under this Article shall be reduced by the amount of the recovery from any other insurance guaranty fund or its equivalent.
(Source: P.A. 99-387, eff. 8-17-15.)

215 ILCS 5/547

    (215 ILCS 5/547) (from Ch. 73, par. 1065.97)
    Sec. 547. Prevention of insolvencies. To aid in the detection and prevention of company insolvencies:
        (a) The board of directors may, upon majority vote,
    
make recommendations to the Director on matters pertaining to regulation for solvency.
        (b) The board of directors may prepare a report on
    
the history and causes of any company insolvency in which the Fund was obligated to pay covered claims, based on the information available to the Fund, and submit such report to the Director.
        (c) The Director may disclose to the Fund the
    
information described in subsection (g) of Section 132.5 as well as the information described in subsection (c) of Section 131.22, and the Fund may use that information to prepare for the possible liquidation of a member company subject to the requirements and restrictions set forth in Section 132.5.
(Source: P.A. 102-929, eff. 5-27-22.)

215 ILCS 5/548

    (215 ILCS 5/548) (from Ch. 73, par. 1065.98)
    Sec. 548. Examination of the Fund. The Fund shall be subject to examination and regulation by the Director. The board of directors shall, not later than April 30 of each year, submit a financial report for the preceding calendar year in a form approved by the Director.
(Source: P.A. 99-388, eff. 1-1-16.)

215 ILCS 5/549

    (215 ILCS 5/549) (from Ch. 73, par. 1065.99)
    Sec. 549. Tax exemption.
    The Fund shall be exempt from payment of all fees and all taxes levied by this State or any of its subdivisions.
(Source: P.A. 77-305.)

215 ILCS 5/550

    (215 ILCS 5/550) (from Ch. 73, par. 1065.100)
    Sec. 550. Immunity.
    There shall be no liability on the part of and no cause of action of any nature shall arise against any member company, the Fund or their agents or employees, the board of directors, or the Director or his representatives for any action taken or omitted by them in the performance of their powers and duties under this Article.
(Source: P.A. 77-305.)

215 ILCS 5/551

    (215 ILCS 5/551) (from Ch. 73, par. 1065.101)
    Sec. 551. Stay of proceedings. All proceedings arising out of a claim under a policy of insurance written by an insolvent company shall be stayed for 120 days from the date of the entry of the Order of Liquidation to permit proper defense by the Fund of all such pending causes of action.
(Source: P.A. 92-77, eff. 7-12-01.)

215 ILCS 5/552

    (215 ILCS 5/552) (from Ch. 73, par. 1065.102)
    Sec. 552. All provisions of this Article shall be interpreted in accordance with and pursuant to those Sections of Article XIII of this Code which may be applicable.
(Source: P.A. 85-576.)

215 ILCS 5/553

    (215 ILCS 5/553) (from Ch. 73, par. 1065.103)
    Sec. 553. Severability.
    If any provision of this Article or the application thereof to any claimant, company or circumstance is held invalid, such invalidity does not affect other provisions or applications of this Article which can be given effect without the invalid application or provision, and to this end the provisions of this Article are declared to be severable.
(Source: P.A. 77-305.)

215 ILCS 5/Art. XXXVIII

 
    (215 ILCS 5/Art. XXXVIII heading)
ARTICLE XXXVIII. (Repealed by P.A. 88-379)

215 ILCS 5/801

    (215 ILCS 5/801) (from Ch. 73, par. 1065.401)
    Sec. 801. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/802

    (215 ILCS 5/802) (from Ch. 73, par. 1065.402)
    Sec. 802. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/803

    (215 ILCS 5/803) (from Ch. 73, par. 1065.403)
    Sec. 803. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/803a

    (215 ILCS 5/803a) (from Ch. 73, par. 1065.403a)
    Sec. 803a. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/804

    (215 ILCS 5/804) (from Ch. 73, par. 1065.404)
    Sec. 804. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/805

    (215 ILCS 5/805) (from Ch. 73, par. 1065.405)
    Sec. 805. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/806

    (215 ILCS 5/806) (from Ch. 73, par. 1065.406)
    Sec. 806. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/806A

    (215 ILCS 5/806A) (from Ch. 73, par. 1065.406A)
    Sec. 806A. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/807

    (215 ILCS 5/807) (from Ch. 73, par. 1065.407)
    Sec. 807. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/808

    (215 ILCS 5/808) (from Ch. 73, par. 1065.408)
    Sec. 808. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/809

    (215 ILCS 5/809) (from Ch. 73, par. 1065.409)
    Sec. 809. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/810

    (215 ILCS 5/810) (from Ch. 73, par. 1065.410)
    Sec. 810. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/811

    (215 ILCS 5/811) (from Ch. 73, par. 1065.411)
    Sec. 811. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/812

    (215 ILCS 5/812) (from Ch. 73, par. 1065.412)
    Sec. 812. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/813

    (215 ILCS 5/813) (from Ch. 73, par. 1065.413)
    Sec. 813. (Repealed).
(Source: Repealed by P.A. 88-379.)

215 ILCS 5/Art. XXXVIIIA

 
    (215 ILCS 5/Art. XXXVIIIA heading)
Article XXXVIIIA
MINE SUBSIDENCE INSURANCE

215 ILCS 5/801.1

    (215 ILCS 5/801.1)
    Sec. 801.1. Purpose. The purpose of this Article is to require insurers to make mine subsidence insurance coverage available for residences, living units and commercial buildings located in Illinois; to establish the Illinois Mine Subsidence Insurance Fund; to divide the Fund into separate residential and commercial sub-funds; and to make the Fund the reinsurer for the mine subsidence insurance made available under this Article.
(Source: P.A. 88-379.)

215 ILCS 5/802.1

    (215 ILCS 5/802.1)
    Sec. 802.1. Definitions. As used in this Article:
    (a) "Commercial Building" means any building, other than a residence, permanently affixed to realty located in Illinois, including basements, footings, foundations, septic systems and underground pipes directly servicing the building, but does not include sidewalks, driveways, parking lots, living units, land, trees, plants, crops or agricultural field drainage tile.
    (b) "Commercial Coverage" means mine subsidence insurance for a commercial building.
    (c) "Insurer" or "Insurers" means insurance companies and reciprocals licensed and authorized to write Class 3 policies of insurance, as defined in this Code, within Illinois.
    (d) "Living Unit" shall mean that physical portion designated for separate ownership or occupancy for residential purposes, of a building or group of buildings, permanently affixed to realty located in Illinois, having elements which are owned or used in common, including a condominium unit, a cooperative unit or any other similar unit.
    (e) "Living Unit Coverage" means mine subsidence insurance for a living unit covering the losses described in Section 805.1(d).
    (f) "Mine Subsidence" means lateral or vertical ground movement caused by a failure initiated at the mine level, of man-made underground mines, including, but not limited to coal mines, clay mines, limestone mines, and fluorspar mines that directly damages residences or commercial buildings. "Mine Subsidence" does not include lateral or vertical ground movement caused by earthquake, landslide, volcanic eruption, soil conditions, soil erosion, soil freezing and thawing, improperly compacted soil, construction defects, roots of trees and shrubs or collapse of storm and sewer drains and rapid transit tunnels.
    (g) "Mine Subsidence Insurance Fund" or "Fund" means the fund established by this Article.
    (h) "Policy" or "policies" means any contract or contracts of insurance providing the coverage of the Standard Fire Policy and Extended Coverage Endorsement on any residence, living unit or commercial building. It does not include those insurance contracts that are referred to as marine or inland marine policies.
    (i) "Premium" or "premiums" means the gross amount charged to policyholders for the mine subsidence insurance made available under this Article.
    (j) "Rates" or "rate schedules" means the rates by which premiums shall be computed for the mine subsidence insurance made available under this Article.
    (k) "Residence" means a building used principally for residential purposes up to and including a four family dwelling, permanently affixed to realty located in Illinois, including appurtenant structures, driveways, sidewalks, basements, footings, foundations, septic systems and underground pipes directly servicing the dwelling or building, but does not include living units, land, trees, plants, crops or agricultural field drainage tile.
    (l) "Residential Coverage" means mine subsidence insurance for a residence.
    (m) "Intergovernmental cooperative" means an intergovernmental cooperative organized pursuant to Article VII, Section 10 of the Illinois Constitution and Section 6 of the Intergovernmental Cooperation Act.
(Source: P.A. 90-499, eff. 8-19-97.)

215 ILCS 5/803.1

    (215 ILCS 5/803.1)
    Sec. 803.1. Establishment of Fund.
    (a) There is established a fund to be known as the "Illinois Mine Subsidence Insurance Fund". The Fund shall operate pursuant to this Article. The Fund is authorized to transact business, provide services, enter into contracts and sue or be sued in its own name.
    (b) The Fund shall provide reinsurance for mine subsidence losses to all insurers writing mine subsidence insurance pursuant to this Article.
    (c) The monies in the Fund shall be derived from premiums for mine subsidence insurance collected on behalf of the Fund pursuant to this Article, from investment income and from receipt of Federal or State funds. No insurer shall have any liability to the Fund or to any creditor of the Fund, except as may be set forth in this Article, in the Articles of Governance which may be adopted by the Fund, in a reinsurance agreement executed pursuant to Section 810.1, in the Plan of Operation established by the Fund, or in the rules and procedures adopted by the Fund as authorized by the reinsurance agreement.
    (d) The Fund shall establish its rates, rating schedules, deductibles and retentions, minimum premiums, classifications, and the maximum amount of reinsurance available per residence, commercial building, and living unit for mine subsidence insurance which the Fund shall file with the Director. The Director shall have 30 days from the date of receipt to approve or disapprove a rate filing. If no action is taken by the Director within 30 days, the rate is deemed to be approved. The Director may, in writing, extend the period for an additional 30 days if the Director determines that additional time is needed.
    (e) The Fund shall establish its rates, rating schedules, deductibles and retentions, minimum premiums, classifications, and the maximum amount of reinsurance available per residence, commercial building, and living unit in such a manner as to satisfy all reasonably foreseeable claims and expenses the Fund is likely to incur. The Fund shall give due consideration to loss experience and relevant trends, premium and other income and reasonable reserves established for contingencies in establishing the mine subsidence rates.
    (f) The Fund shall compile and publish an annual operating report.
    (g) The Fund shall develop at least 2 consumer information publications to aid the public in understanding mine subsidence and mine subsidence insurance and shall establish a schedule for the distribution of the publications pursuant to the reinsurance agreement. Topics that shall be addressed shall include but are not limited to:
        (1) Descriptive information about mine subsidence,
    
and what benefits mine subsidence insurance provides to the property owner.
        (2) Information that will be useful to a policyholder
    
who has filed a mine subsidence claim, such as information that explains the claim investigation process and claim handling procedures.
    (h) The Fund shall be empowered to conduct research programs in an effort to improve the administration of the mine subsidence insurance program and help reduce and mitigate mine subsidence losses consistent with the public interest.
    (i) The Fund may enter into reinsurance agreements with any intergovernmental cooperative that provides joint self-insurance for mine subsidence losses of its members. These reinsurance agreements shall be substantially similar to reinsurance agreements described in Section 810.1.
(Source: P.A. 95-92, eff. 1-1-08; 95-334, eff. 1-1-08.)

215 ILCS 5/804.1

    (215 ILCS 5/804.1)
    Sec. 804.1. Management of the Fund.
    (a) The Fund shall be managed by an 11 member Board of Directors, 6 of whom shall be insurance industry directors, 4 of whom shall be public directors, and one of whom shall be an Illinois licensed insurance producer. The industry directors shall be elected annually in the manner provided in Articles of Governance adopted by the Fund. The public directors shall be appointed by the Director, and shall not be employees of or otherwise affiliated with the insurance industry. The Illinois licensed insurance producer shall be appointed by the Director.
    (b) The members of the Governing Committee of the Illinois Mine Subsidence Insurance Fund established by Article XXXVIII who are members of the Governing Committee as of December 31, 1993 shall become the members of the Board of Directors of the Fund established by this Article on the effective date of this Act, and shall continue to hold office until the next annual meeting of the Fund.
    (c) No later than the date of the next annual meeting of the Fund following the effective date of this Act, the Director shall appoint 4 public directors, one for a one-year term, one for a two-year term and 2 for three-year terms. No later than the date of the next annual meeting of the Fund following the effective date of this amendatory Act of 1994, the Director shall appoint the Illinois licensed insurance producer for a 2-year term. Thereafter, all public directors and the licensed insurance producer shall be appointed for 3 year terms.
    (d) As soon as practical after the effective date of this Act, the Fund shall adopt Articles of Governance, which shall be submitted to the Director for his review and approval.
(Source: P.A. 88-379; 88-667, eff. 9-16-94; 89-206, eff. 7-21-95.)

215 ILCS 5/805.1

    (215 ILCS 5/805.1)
    Sec. 805.1. Mine Subsidence Coverage.
    (a) Beginning January 1, 1994, every policy issued or renewed insuring a residence on a direct basis shall include, at a separately stated premium, residential coverage unless waived in writing by the insured. Beginning January 1, 1994, every policy issued or renewed insuring a commercial building on a direct basis shall include at a separately stated premium, commercial coverage unless waived in writing by the insured. Beginning January 1, 1994, every policy issued or renewed insuring a living unit on a direct basis shall include, at a separately stated premium, living unit coverage unless waived in writing by the insured.
    (b) If the insured has previously waived mine subsidence coverage in writing, the insurer or agent need not offer mine subsidence coverage in any renewal or supplementary policy in connection with a policy previously issued to such insured by the same insurer, unless the insured subsequently makes a written request for mine subsidence coverage.
    (c) The premium charged for residential, commercial or living unit coverage shall be the premium level set by the Fund. The loss covered shall be the loss in excess of the deductible or retention established by the Fund and contained in a mine subsidence endorsement to the policy. For all policies issued or renewed on or after January 1, 2008, the reinsured loss per residence, per commercial building, and per living unit shall be the amounts established by the Fund and approved by the Director. For all policies issued or renewed on or after January 1, 1996, the amount of reinsurance available from the Fund shall not be less than $200,000 per residence, $200,000 per commercial building, or $15,000 per living unit. The Fund may, from time to time, adjust the amount of reinsurance available as long as the minimum set by this Section is met.
    (d) The residential coverage provided pursuant to this Article may also cover the additional living expenses reasonably and necessarily incurred by the owner of a residence who has been temporarily displaced as the direct result of damage to the residence caused by mine subsidence if the underlying policy also covers this type of loss, provided however, that the loss covered under living unit coverage shall be limited to losses to improvements and betterments, and reimbursement of additional living expenses and assessments made against the insured on account of mine subsidence loss.
    (e) The total amount of the loss reimbursable to an insurer shall be limited to the amount of insurance reinsured by the Fund in force at the time when the damage first becomes reasonably observable. All damage caused by a single mine subsidence event or several subsidence events which are continuous shall constitute one occurrence. As set forth in subsections (a) and (c) of this Section, a policy issued or renewed must provide coverage, unless waived in writing by the insured, and the insurer must continue to charge the premium level set for that coverage by the Fund. If mine subsidence coverage is in force when the mine subsidence damage first becomes reasonably observable, then the insurer shall notify the insured making the mine subsidence claim that continuation of that coverage thereafter may not be necessary and is optional, but that continued coverage on the damaged residence or commercial building shall terminate only upon written waiver by the insured. The notification shall be made within 60 days after the insurer receives written confirmation from the Fund that the cause of loss is active mine subsidence. The notification shall be in the form of a separate mailing to the insured from the insurer via the United States Postal Service and shall include notification to the insured that mine subsidence premiums paid for coverage on a damaged residence or commercial building subsequent to the established date of loss shall be refunded to the insured within 60 days after the insured provides a signed waiver of mine subsidence coverage to the insurer. The notification shall be accompanied by a waiver of coverage form for the insured to sign and return to the insurer.
    (f) No insurer shall be required to offer mine subsidence coverage in excess of the reinsured limits.
(Source: P.A. 98-1007, eff. 1-1-15.)

215 ILCS 5/806.1

    (215 ILCS 5/806.1)
    Sec. 806.1. Division of Fund Into Separate Residential and Commercial Sub-funds.
    (a) Effective January 1, 1994, the Fund shall establish 2 separate sub-funds, a Residential Fund to provide reinsurance for mine subsidence losses arising from residential and living unit coverage and a Commercial Fund to provide reinsurance for mine subsidence losses arising from commercial coverage. The assets and liabilities of the Fund shall be allocated to the two sub-funds in such manner as determined by the Board of Directors, with the approval of the Director. The two sub-funds shall continue to be managed by the Board of Directors. Beginning January 1, 1994, all premiums received by the Fund for residential coverage or living unit coverage shall be credited to the Residential Fund, all losses and expenses for residential coverage or living unit coverage shall be charged to the Residential Fund. All premiums received by the Fund for commercial coverage shall be credited to the Commercial Fund, and all losses and expenses for commercial coverage shall be charged to the Commercial Fund. The Fund's overhead expenses shall be allocated between the Residential Fund and the Commercial Fund on the basis of annual written premium credited to each sub-fund. The assets and liabilities of the Residential and Commercial Funds shall be accounted for separately. The assets of the Residential Fund shall not be used to reimburse insurers for losses for Commercial Coverage and the assets of the Commercial Fund shall not be used to reimburse insurers for losses for residential coverage or living unit coverage.
    (b) No insurer shall be required to pay any claim for any loss reinsured under this Article except to the extent that the amount available in the Residential Fund or the Commercial Fund, as the case may be, is sufficient to reimburse the insurer for such payment.
(Source: P.A. 88-379; 89-206, eff. 7-21-95.)

215 ILCS 5/807.1

    (215 ILCS 5/807.1)
    Sec. 807.1. Exemption of Certain Counties by the Director. The Director shall exempt every policy insuring residences, living units or commercial buildings located in any county of 1,000,000 or more inhabitants or any county contiguous to any such county, and, upon request of the Fund, may exempt every policy insuring residences, living units or commercial buildings located in any other specified county of this State, from the provisions of Section 805.1 of this Article.
(Source: P.A. 91-357, eff. 7-29-99.)

215 ILCS 5/808.1

    (215 ILCS 5/808.1)
    Sec. 808.1. Right of Insurers to Refuse to Provide Mine Subsidence Coverage. An insurer may refuse to provide mine subsidence coverage on a residence or commercial building evidencing unrepaired mine subsidence damage until such damage has been repaired.
(Source: P.A. 88-379.)

215 ILCS 5/809.1

    (215 ILCS 5/809.1)
    Sec. 809.1. Arbitration. In the event of a dispute between a policyholder and an insurer as to whether a residence or commercial building covered by mine subsidence insurance has been damaged by mine subsidence, a policyholder shall have the right to submit that dispute to arbitration in accordance with this Section. No policyholder shall have the right under this Section to submit to arbitration any issue regarding the amount of loss or damage caused to a residence or commercial building by mine subsidence.
    Arbitration may be initiated only after the insurer has made a decision that the residence or commercial building covered by mine subsidence insurance was not damaged by mine subsidence and so notified the policyholder in writing, accompanied by a notice informing the policyholder of the policyholder's right to arbitration and containing specific reference to this Section. Within 60 days after receipt by the policyholder of the notification, the policyholder may initiate arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, as then in effect. All costs of the arbitration shall be borne by the losing party. Appeals from the decision of the arbitrators shall be in accordance with the Uniform Arbitration Act as in effect in Illinois.
(Source: P.A. 88-379.)

215 ILCS 5/810.1

    (215 ILCS 5/810.1)
    Sec. 810.1. Reinsurance Agreements. All insurers shall enter into a reinsurance agreement with the Fund. The reinsurance agreement shall be filed with and approved by the Director. The agreement shall provide that each insurer shall cede 100% of any subsidence insurance written up to the limits contained in Section 805.1(c) to the Fund and, in consideration of the ceding commission retained by the insurer, agrees to distribute informational publications provided by the Fund on a schedule set by the Fund, undertake adjustment of losses, payment of taxes, and all other expenses of the insurer necessary for sale of policies and administration of the mine subsidence insurance coverage. The Fund shall agree to reimburse the insurer for all amounts reasonably and properly paid policyholders from claims resulting from mine subsidence and for expenses specified in the reinsurance agreement. In addition, the reinsurance agreement may contain, and may authorize the Fund to establish and promulgate deductibles. The reinsurance agreement may also contain reasonable rules and procedures covering insurer documentation of losses; insurer reporting of claims, reports of litigation, premiums and loss payments; loss payment review by the Fund; remitting of premiums to the Fund; underwriting; and cause and origin investigations; and procedures for resolving disputes between the insurers and the Fund.
(Source: P.A. 90-655, eff. 7-30-98; 91-357, eff. 7-29-99.)

215 ILCS 5/811.1

    (215 ILCS 5/811.1)
    Sec. 811.1. Distribution of Premiums. The Fund is authorized to establish the proportion of total mine subsidence insurance premiums collected by each insurer which shall be retained by the insurer as a ceding commission, subject to review of the Director. The remainder of such premiums shall be remitted by the insurer to the Fund at times to be determined by the Fund. The ceding commission shall be uniform in all reinsurance agreements entered into pursuant to Section 810.1 of this Article and shall be based on reasonable administrative costs to the insurers, including agents' commissions.
(Source: P.A. 88-379.)

215 ILCS 5/812.1

    (215 ILCS 5/812.1)
    Sec. 812.1. Claim Payments. The Residential or the Commercial Fund, as the case may be, shall reimburse insurers for all amounts due within 90 days after receiving adequate documentation, as set forth in the reinsurance agreement, the Plan of Operation or in the operating rules and procedures adopted by the Fund, that the insurer has properly paid the claim and is entitled to reimbursement by the Fund, subject to the limitations imposed by Section 806.1.
(Source: P.A. 88-379.)

215 ILCS 5/813.1

    (215 ILCS 5/813.1)
    Sec. 813.1. Reporting Requirements. Every insurer must report, at times designated by the Fund, such information as is reasonably required by the Fund to conduct its affairs, establish claim reserves, and reimburse insurers for losses paid to insureds.
(Source: P.A. 88-379.)

215 ILCS 5/814.1

    (215 ILCS 5/814.1)
    Sec. 814.1. Right of Recourse.
    (a) The Fund shall have no right of recourse against the insurer, once the Fund has reimbursed the insurer for any particular loss, unless the insurer has failed to settle that loss in its customary manner, or in case of fraud by the insurer.
    (b) The Fund may seek recovery against the policyholder for unjust enrichment if, in the Fund's judgment, the policyholder was not entitled to the amounts paid because of fraud, or a material violation of the policy conditions. The insurer shall provide cooperation to the Fund.
(Source: P.A. 88-379.)

215 ILCS 5/815.1

    (215 ILCS 5/815.1)
    Sec. 815.1. Subrogation.
    (a) All insurers issuing mine subsidence policies shall retain the right of subrogation.
    (b) The Fund, on its own behalf, may exercise the right of subrogation.
    (c) Every insurer shall include in its reports an itemized list of all losses in subrogation and shall remit to the Fund all monies, less expenses, recovered as the result of subrogation actions.
(Source: P.A. 88-379.)

215 ILCS 5/817.1

    (215 ILCS 5/817.1)
    Sec. 817.1. Powers of Director. In addition to any powers conferred upon him by this or any other law, the Director shall have the authority to supervise the operations of the Fund and shall review the Fund's rates once every three years. In addition the Director or any person designated by him has the power:
        (a) to examine the operation of the Fund through free
    
access to all books, records, files, papers and documents relating to its operation and may summon, qualify and examine as witnesses all persons having knowledge of such operation, including officers, agents or employees thereof;
        (b) to do all things necessary to enable the State of
    
Illinois and any insurer participating in any program approved by the Director to fully participate in any federal program which may be enacted for purposes similar to the purposes of this Article;
        (c) to require such reports as the Director may deem
    
necessary.
(Source: P.A. 90-655, eff. 7-30-98.)

215 ILCS 5/Art. XXXVIII.5

 
    (215 ILCS 5/Art. XXXVIII.5 heading)
ARTICLE XXXVIII 1/2. GROUP SELF-INSURANCE PROGRAMS
(Repealed by P.A. 89-97, eff. 7-7-95)

215 ILCS 5/850

    (215 ILCS 5/850) (from Ch. 73, par. 1065.501)
    Sec. 850. (Repealed).
(Source: Repealed by P.A. 89-97, eff. 7-7-95.)

215 ILCS 5/Art. XXXIX

 
    (215 ILCS 5/Art. XXXIX heading)
ARTICLE XXXIX. GROUP LEGAL EXPENSE INSURANCE

215 ILCS 5/900

    (215 ILCS 5/900) (from Ch. 73, par. 1065.600)
    Sec. 900. Group legal expense defined. Group legal expense insurance means that form of legal expense insurance covering not less than 10 employees, members, or employees of members, written under a master policy issued to any governmental corporation, unit, agency or department thereof, or to any corporation, copartnership, individual employer, or to any association upon application of an executive officer or trustee of such association having a constitution or bylaws and formed in good faith for purposes other than that of obtaining insurance, where officers, members, employees, employees of members or classes or departments thereof may be insured for their individual benefit. In addition, a group legal expense policy may be written to insure any group which may be insured under a group life insurance policy. The term "employees" includes the officers, managers and employees or subsidiary or affiliated corporations, and the individual proprietors, partners, and employees of affiliated individuals and firms, when the business of such subsidiary or affiliated corporations, firms or individuals is controlled by a common employer through stock ownership, contract or otherwise.
(Source: P.A. 81-1361.)

215 ILCS 5/901

    (215 ILCS 5/901) (from Ch. 73, par. 1065.601)
    Sec. 901. Group legal expense insurance authorized.) Any insurance company authorized to write legal expense insurance in this State shall have the power to issue group legal expense insurance policies. No policy, certificate, endorsement, rider, or application which becomes or is designed to become a part of any such policy of group legal expense insurance may be issued or delivered in this State unless a copy of the form shall have been filed with the Director of Insurance in accordance with Section 143 of this Code. Such policy, certificate, endorsement, rider, or application must contain those provisions required by Sections 902 through 906 of the Code. No such policy, certificate, endorsement, application or rider shall contain any provision which would interfere with the freedom of choice by the insured in the selection of attorneys except that the insurer may select and contract with attorneys to verify plan coverage and to provide the insureds with legal services which consist of initial advice and consultation. Nothing herein shall prevent an insured, after plan coverage has been verified, from choosing to go directly to his or her own attorney of choice for initial advice and consultation, subject to applicable policy limitations. Every such policy, certificate, endorsement, application or rider shall prominently display language advising the insured of such freedom of choice by the insured in the selection of attorneys and that no company issuing such policy, certificate, endorsement, application or rider may require, suggest or recommend the use of any attorney or firm of attorneys, provided, however, that dissemination by an insurer of the names of attorneys who have agreed to accept legal expense insurance benefits as payment for certain legal services shall not constitute a requirement, suggestion or recommendation of the use of any attorney or firm of attorneys. The foregoing shall not prohibit referral of insured by the insurer to any lawyer referral service authorized or operated by a state, county, local or other bar association. Any insurance company issuing such policies shall in no way interfere with the attorney-client relationship nor with the independent exercise of professional judgment by any attorney.
(Source: P.A. 83-774.)

215 ILCS 5/902

    (215 ILCS 5/902) (from Ch. 73, par. 1065.602)
    Sec. 902. Entire contract specified. Each group legal expense insurance policy shall provide that the policy, the application of the employer, or executive officer or trustee of any association, and the individual applications, if any, of the employees, members or employees of members insured shall constitute the entire contract between the parties, and that all statements made by the employer, or the executive officer or trustee, or by the individual employees, members or employees of members shall, in the absence of fraud, be deemed representations and not warranties, and that no such statement shall be used in defense to a claim under the policy, unless it is contained in a written application.
(Source: P.A. 99-642, eff. 7-28-16.)

215 ILCS 5/903

    (215 ILCS 5/903) (from Ch. 73, par. 1065.603)
    Sec. 903. Certificates Required.) Each group legal expense insurance policy shall provide that the insurer shall issue to the employer, or to the executive officer or trustee of the association, for delivery to the employee, member or employee of a member, who is insured under such policy, an individual certificate setting forth a statement as to the insurance protection to which he or she is entitled and to whom payable, if appropriate.
(Source: P.A. 81-1361.)

215 ILCS 5/904

    (215 ILCS 5/904) (from Ch. 73, par. 1065.604)
    Sec. 904. New Members of Group.) Each group legal expense insurance policy shall provide that to the group or class thereof originally insured shall be added from time to time all new employees of the employer, members of the association or employees of members eligible to and applying for insurance in such group or class, but participation in the group plan shall not be required as a condition of employment, nor shall any member not participating in the plan be coerced or discriminated against.
(Source: P.A. 81-1361.)

215 ILCS 5/905

    (215 ILCS 5/905) (from Ch. 73, par. 1065.605)
    Sec. 905. Conversion Rights.) Each group legal expense insurance policy shall provide that any member of the group shall have the right to convert his group policy to an individual standard policy of insurance in the same company as offered by the insurer to the non-group insureds upon termination of his connection with the group extending to him or her the same limits of coverage.
(Source: P.A. 81-1361.)

215 ILCS 5/906

    (215 ILCS 5/906) (from Ch. 73, par. 1065.606)
    Sec. 906. Cancellation Restricted. An insurer may not cancel the coverage of an individual member of a group to which the insurer provides coverage under a group legal expense insurance policy except for the nonpayment of premium by such member, or the group policyholder if premium is paid or collected by it for transmittal to the insurer or unless the insurance for the entire group is cancelled. In the event of cancellation the insurer shall:
    (1) If it has in its actual possession the names and addresses of individual members insured under such group legal expense insurance policy, deliver to the individual member written notice of cancellation stating when, not less than 30 days thereafter, such cancellation shall be effective provided, however, that if such cancellation is the result of nonpayment of premium by such member or the group policyholder, a notice of 10 days shall be sufficient.
    (2) In the event the insurer does not administer the group legal expense insurance policy and is not in actual possession of the names and addresses of individual members insured under such policy, the insurer shall deliver to the employer or to the executive officer or trustee of the association for delivery to the employee, member or employee of a member who is insured under such policy individual notice of cancellation forms stating when, not less than 30 days thereafter, such cancellation shall be effective provided, however, that if such cancellation is the result of nonpayment of premium a notice of 10 days shall be sufficient. The insurer shall not be required to furnish notice of cancellation under this Section to the group policyholder when an individual member's insurance is terminated by reason of nonpayment of premium unless it has specific knowledge of the individual's failure to pay premium.
    Delivery shall be considered effective by the mailing of such notice if subsection (1) above is applicable to the last address of the member as shown on the records of the insurer, and under subsection (2) by the mailing of such notice to the last address of the group policyholder as shown on the records of the insurer.
(Source: P.A. 81-1361.)

215 ILCS 5/Art. XL

 
    (215 ILCS 5/Art. XL heading)
ARTICLE XL. INSURANCE INFORMATION
AND PRIVACY PROTECTION

215 ILCS 5/1001

    (215 ILCS 5/1001) (from Ch. 73, par. 1065.701)
    Sec. 1001. Purpose. The purpose of this Article is to establish standards for the collection, use and disclosure of information gathered in connection with insurance transactions by insurance institutions, agents or insurance-support organizations; to maintain a balance between the need for information by those conducting the business of insurance and the public's need for fairness in insurance information practices, including the need to minimize intrusiveness; to establish a regulatory mechanism to enable natural persons to ascertain what information is being or has been collected about them in connection with insurance transactions and to have access to such information for the purpose of verifying or disputing its accuracy; to limit the disclosure of information collected in connection with insurance transactions; and to enable insurance applicants and policyholders to obtain the reasons for any adverse underwriting decision. Further, this Article shall grant the Director the authority to enforce Title V of the Gramm-Leach-Bliley Act (Public Law 106-102, 106th Congress).
(Source: P.A. 92-556, eff. 6-24-02.)

215 ILCS 5/1002

    (215 ILCS 5/1002) (from Ch. 73, par. 1065.702)
    Sec. 1002. Scope. (A) The obligations imposed by this Article shall apply to those insurance institutions, agents or insurance-support organizations which, on or after the effective date of this Article:
    (1) in the case of life, health or disability insurance:
    (a) collect, receive or maintain information in connection with insurance transactions which pertains to natural persons who are residents of this State, or
    (b) engage in insurance transactions with applicants, individuals or policyholders who are residents of this State, and
    (2) in the case of property or casualty insurance:
    (a) collect, receive or maintain information in connection with insurance transactions involving policies, contracts or certificates of insurance delivered, issued for delivery or renewed in this State, or
    (b) engage in insurance transactions involving policies, contracts or certificates of insurance delivered, issued for delivery or renewed in this State.
    (B) The rights granted by this Article shall extend to:
    (1) in the case of life, health or disability insurance, the following persons who are residents of this State:
    (a) natural persons who are the subject of information collected, received or maintained in connection with insurance transactions, and
    (b) applicants, individuals or policyholders who engage in or seek to engage in insurance transactions, and
    (2) in the case of property or casualty insurance, the following persons:
    (a) natural persons who are the subject of information collected, received or maintained in connection with insurance transactions involving policies, contracts or certificates of insurance delivered, issued for delivery or renewed in this State, and
    (b) applicants, individuals or policyholders who engage in or seek to engage in insurance transactions involving policies, contracts or certificates of insurance delivered, issued for delivery or renewed in this State.
    (C) For purposes of this Section, a person shall be considered a resident of this State if the person's last known mailing address, as shown in the records of the insurance institution, agent or insurance-support organization, is located in this State.
    (D) Notwithstanding subsections (A) and (B) above, this Article shall not apply to information collected from the public records of a governmental authority and maintained by an insurance institution or its representatives for the purpose of insuring the title to real property located in this State.
(Source: P.A. 81-1430.)

215 ILCS 5/1003

    (215 ILCS 5/1003) (from Ch. 73, par. 1065.703)
    Sec. 1003. Definitions. As used in this Article:
    (A) "Adverse underwriting decision" means:
        (1) any of the following actions with respect to
    
insurance transactions involving insurance coverage which is individually underwritten:
            (a) a declination of insurance coverage,
            (b) a termination of insurance coverage,
            (c) failure of an agent to apply for insurance
        
coverage with a specific insurance institution which the agent represents and which is requested by an applicant,
            (d) in the case of a property or casualty
        
insurance coverage:
                (i) placement by an insurance institution or
            
agent of a risk with a residual market mechanism, an unauthorized insurer or an insurance institution which specializes in substandard risks, or
                (ii) the charging of a higher rate on the
            
basis of information which differs from that which the applicant or policyholder furnished, or
            (e) in the case of life, health or disability
        
insurance coverage, an offer to insure at higher than standard rates.
        (2) Notwithstanding paragraph (1) above, the
    
following actions shall not be considered adverse underwriting decisions but the insurance institution or agent responsible for their occurrence shall nevertheless provide the applicant or policyholder with the specific reason or reasons for their occurrence:
            (a) the termination of an individual policy form
        
on a class or statewide basis,
            (b) a declination of insurance coverage solely
        
because such coverage is not available on a class or statewide basis, or
            (c) the rescission of a policy.
    (B) "Affiliate" or "affiliated" means a person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with another person.
    (C) "Agent" means an individual, firm, partnership, association or corporation who is involved in the solicitation, negotiation or binding of coverages for or on applications or policies of insurance, covering property or risks located in this State. For the purposes of this Article, both "Insurance Agent" and "Insurance Broker", as defined in Section 490, shall be considered an agent.
    (D) "Applicant" means any person who seeks to contract for insurance coverage other than a person seeking group insurance that is not individually underwritten.
    (E) "Director" means the Director of Insurance.
    (F) "Consumer report" means any written, oral or other communication of information bearing on a natural person's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living which is used or expected to be used in connection with an insurance transaction.
    (G) "Consumer reporting agency" means any person who:
        (1) regularly engages, in whole or in part, in the
    
practice of assembling or preparing consumer reports for a monetary fee,
        (2) obtains information primarily from sources other
    
than insurance institutions, and
        (3) furnishes consumer reports to other persons.
    (H) "Control", including the terms "controlled by" or "under common control with", means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person.
    (I) "Declination of insurance coverage" means a denial, in whole or in part, by an insurance institution or agent of requested insurance coverage.
    (J) "Individual" means any natural person who:
        (1) in the case of property or casualty insurance, is
    
a past, present or proposed named insured or certificateholder;
        (2) in the case of life, health or disability
    
insurance, is a past, present or proposed principal insured or certificateholder;
        (3) is a past, present or proposed policyowner;
        (4) is a past or present applicant;
        (5) is a past or present claimant; or
        (6) derived, derives or is proposed to derive
    
insurance coverage under an insurance policy or certificate subject to this Article.
    (K) "Institutional source" means any person or governmental entity that provides information about an individual to an agent, insurance institution or insurance-support organization, other than:
        (1) an agent,
        (2) the individual who is the subject of the
    
information, or
        (3) a natural person acting in a personal capacity
    
rather than in a business or professional capacity.
    (L) "Insurance institution" means any corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternal benefit society or other person engaged in the business of insurance, health maintenance organizations as defined in Section 2 of the Health Maintenance Organization Act, voluntary health services plans as defined in Section 2 of the Voluntary Health Services Plans Act, and dental service plans as defined in Section 4 of the Dental Service Plan Act. "Insurance institution" shall not include agents or insurance-support organizations.
    (M) "Insurance-support organization" means:
        (1) any person who regularly engages, in whole or in
    
part, in the practice of assembling or collecting information about natural persons for the primary purpose of providing the information to an insurance institution or agent for insurance transactions, including:
            (a) the furnishing of consumer reports or
        
investigative consumer reports to an insurance institution or agent for use in connection with an insurance transaction, or
            (b) the collection of personal information from
        
insurance institutions, agents or other insurance-support organizations for the purpose of detecting or preventing fraud, material misrepresentation or material nondisclosure in connection with insurance underwriting or insurance claim activity.
        (2) Notwithstanding paragraph (1) above, the
    
following persons shall not be considered "insurance-support organizations" for purposes of this Article: agents, government institutions, insurance institutions, medical care institutions and medical professionals.
    (N) "Insurance transaction" means any transaction involving insurance primarily for personal, family or household needs rather than business or professional needs which entails:
        (1) the determination of an individual's eligibility
    
for an insurance coverage, benefit or payment, or
        (2) the servicing of an insurance application,
    
policy, contract or certificate.
    (O) "Investigative consumer report" means a consumer report or portion thereof in which information about a natural person's character, general reputation, personal characteristics or mode of living is obtained through personal interviews with the person's neighbors, friends, associates, acquaintances or others who may have knowledge concerning such items of information.
    (P) "Medical-care institution" means any facility or institution that is licensed to provide health care services to natural persons, including but not limited to: hospitals, skilled nursing facilities, home-health agencies, medical clinics, rehabilitation agencies and public-health agencies and health-maintenance organizations.
    (Q) "Medical professional" means any person licensed or certified to provide health care services to natural persons, including but not limited to, a physician, dentist, nurse, optometrist, chiropractor, naprapath, pharmacist, physical or occupational therapist, psychiatric social worker, speech therapist, clinical dietitian or clinical psychologist.
    (R) "Medical-record information" means personal information which:
        (1) relates to an individual's physical or mental
    
condition, medical history or medical treatment, and
        (2) is obtained from a medical professional or
    
medical-care institution, from the individual, or from the individual's spouse, parent or legal guardian.
    (S) "Person" means any natural person, corporation, association, partnership or other legal entity.
    (T) "Personal information" means any individually identifiable information gathered in connection with an insurance transaction from which judgments can be made about an individual's character, habits, avocations, finances, occupation, general reputation, credit, health or any other personal characteristics. "Personal information" includes an individual's name and address and "medical-record information" but does not include "privileged information".
    (U) "Policyholder" means any person who:
        (1) in the case of individual property or casualty
    
insurance, is a present named insured;
        (2) in the case of individual life, health or
    
disability insurance, is a present policyowner; or
        (3) in the case of group insurance which is
    
individually underwritten, is a present group certificateholder.
    (V) "Pretext interview" means an interview whereby a person, in an attempt to obtain information about a natural person, performs one or more of the following acts:
        (1) pretends to be someone he or she is not,
        (2) pretends to represent a person he or she is not
    
in fact representing,
        (3) misrepresents the true purpose of the interview,
    
or
        (4) refuses to identify himself or herself upon
    
request.
    (W) "Privileged information" means any individually identifiable information that: (1) relates to a claim for insurance benefits or a civil or criminal proceeding involving an individual, and (2) is collected in connection with or in reasonable anticipation of a claim for insurance benefits or civil or criminal proceeding involving an individual; provided, however, information otherwise meeting the requirements of this subsection shall nevertheless be considered "personal information" under this Article if it is disclosed in violation of Section 1014 of this Article.
    (X) "Residual market mechanism" means an association, organization or other entity described in Article XXXIII of this Act, or Section 7-501 of The Illinois Vehicle Code.
    (Y) "Termination of insurance coverage" or "termination of an insurance policy" means either a cancellation or nonrenewal of an insurance policy, in whole or in part, for any reason other than the failure to pay a premium as required by the policy.
    (Z) "Unauthorized insurer" means an insurance institution that has not been granted a certificate of authority by the Director to transact the business of insurance in this State.
(Source: P.A. 90-7, eff. 6-10-97; 90-177, eff. 7-23-97; 90-372, eff. 7-1-98; 90-655, eff. 7-30-98.)

215 ILCS 5/1004

    (215 ILCS 5/1004) (from Ch. 73, par. 1065.704)
    Sec. 1004. Pretext Interviews. No insurance institution, agent or insurance-support organization shall use or authorize the use of pretext interviews to obtain information in connection with an insurance transaction; provided, however, a pretext interview may be undertaken to obtain information from a person or institution that does not have a generally or statutorily recognized privileged relationship with the person about whom the information relates for the purpose of investigating a claim where, based upon specific information available for review by the Director, there is a reasonable basis for suspecting criminal activity, fraud, material misrepresentation or material nondisclosure in connection with the claim.
(Source: P.A. 82-108.)

215 ILCS 5/1005

    (215 ILCS 5/1005) (from Ch. 73, par. 1065.705)
    Sec. 1005. Notice of Insurance Information Practices. (A) An insurance institution or agent shall provide a notice of information practices to all applicants or policyholders in connection with insurance transactions as provided below:
    (1) in the case of an application for insurance, a notice shall be provided no later than:
    (a) at the time of the delivery of the insurance policy or certificate when personal information is collected only from the applicant or from public records, or
    (b) at the time the collection of personal information is initiated when personal information is collected from a source other than the applicant or public records;
    (2) in the case of a policy renewal, a notice shall be provided no later than the policy renewal date, except that no notice shall be required in connection with a policy renewal if:
    (a) personal information is collected only from the policyholder or from public records, or
    (b) a notice meeting the requirements of this Section has been given within the previous 24 months; or
    (3) in the case of a policy reinstatement or change in insurance benefits, a notice shall be provided no later than the time a request for a policy reinstatement or change in insurance benefits is received by the insurance institution, except that no notice shall be required if personal information is collected only from the policyholder or from public records.
    (B) The notice required by subsection (A) shall be in writing and shall state:
    (1) whether personal information may be collected from persons other than the individual or individuals proposed for coverage;
    (2) the types of personal information that may be collected and the types of sources and investigative techniques that may be used to collect such information;
    (3) the types of disclosures identified in subsections (B), (C), (D), (E), (F), (I), (K), (L) and (N) of Section 1014 of this Article and the circumstances under which such disclosures may be made without prior authorization; provided, however, only those circumstances need be described which occur with such frequency as to indicate a general business practice;
    (4) a description of the rights established under Sections 1009 and 1010 of this Article and the manner in which such rights may be exercised; and
    (5) that information obtained from a report prepared by an insurance-support organization may be retained by the insurance-support organization and disclosed to other persons.
    (C) In lieu of the notice prescribed in subsection (B), the insurance institution or agent may provide an abbreviated notice informing the applicant or policyholder that:
    (1) personal information may be collected from persons other than the individual or individuals proposed for coverage,
    (2) such information as well as other personal or privileged information subsequently collected by the insurance institution or agent may in certain circumstances be disclosed to third parties without authorization,
    (3) a right of access and correction exists with respect to all personal information collected, and
    (4) the notice prescribed in subsection (B) will be furnished to the applicant or policyholder upon request.
    (D) The obligations imposed by this Section upon an insurance institution or agent may be satisfied by another insurance institution or agent authorized to act on its behalf.
(Source: P.A. 82-108.)

215 ILCS 5/1006

    (215 ILCS 5/1006) (from Ch. 73, par. 1065.706)
    Sec. 1006. Marketing and Research Surveys. An insurance institution or agent shall clearly specify those questions designed to obtain information solely for marketing or research purposes from an individual in connection with an insurance transaction.
(Source: P.A. 82-108.)

215 ILCS 5/1007

    (215 ILCS 5/1007) (from Ch. 73, par. 1065.707)
    Sec. 1007. Content of Disclosure Authorization Forms. Notwithstanding any other provision of law of this State, no insurance institution, agent or insurance-support organization may utilize as its disclosure authorization form in connection with insurance transactions a form or statement which authorizes the disclosure of personal or privileged information about an individual to the insurance institution, agent or insurance-support organization unless the form or statement:
    (A) is written in plain language;
    (B) is dated;
    (C) specifies the types of persons authorized to disclose information about the individual;
    (D) specifies the nature of the information authorized to be disclosed;
    (E) names the insurance institution or agent and identifies by generic reference representatives of the insurance institution to whom the individual is authorizing information to be disclosed;
    (F) specifies the purposes for which the information is collected;
    (G) specifies the length of time such authorization shall remain valid, which shall be no longer than:
    (1) in the case of authorizations signed for the purpose of collecting information in connection with an application for an insurance policy, a policy reinstatement or a request for change in policy benefits:
    (a) 30 months from the date the authorization is signed if the application or request involves life, health or disability insurance,
    (b) one year from the date the authorization is signed if the application or request involves property or casualty insurance;
    (2) in the case of authorizations signed for the purpose of collecting information in connection with a claim for benefits under an insurance policy,
    (a) the term of coverage of the policy if the claim is for a health insurance benefit,
    (b) the duration of the claim if the claim is not for a health insurance benefit; and
    (H) advises the individual or a person authorized to act on behalf of the individual that the individual or the individual's authorized representative is entitled to receive a copy of the authorization form.
(Source: P.A. 82-108.)

215 ILCS 5/1008

    (215 ILCS 5/1008) (from Ch. 73, par. 1065.708)
    Sec. 1008. Investigative Consumer Reports. (A) No insurance institution, agent or insurance-support organization may prepare or request an investigative consumer report about an individual in connection with an insurance transaction involving an application for insurance, a policy renewal, a policy reinstatement or a change in insurance benefits unless the insurance institution or agent informs the individual:
    (1) that he or she may request to be interviewed in connection with the preparation of the investigative consumer report, and
    (2) that upon a request pursuant to Section 1009, he or she is entitled to receive a copy of the investigative consumer report.
    (B) If an investigative consumer report is to be prepared by an insurance institution or agent, the insurance institution or agent shall institute reasonable procedures to conduct a personal interview requested by an individual.
    (C) If an investigative consumer report is to be prepared by an insurance-support organization, the insurance institution or agent desiring such report shall inform the insurance-support organization whether a personal interview has been requested by the individual. The insurance-support organization shall institute reasonable procedures to conduct such interviews, if requested.
(Source: P.A. 82-108.)

215 ILCS 5/1009

    (215 ILCS 5/1009) (from Ch. 73, par. 1065.709)
    Sec. 1009. Access to Recorded Personal Information. (A) If any individual, after proper identification, submits a written request to an insurance institution, agent or insurance-support organization for access to recorded personal information about the individual which is reasonably described by the individual and reasonably locatable and retrievable by the insurance institution, agent or insurance-support organization, the insurance institution, agent or insurance-support organization shall within 30 business days from the date such request is received:
    (1) inform the individual of the nature and substance of such recorded personal information in writing, by telephone or by other oral communication, whichever the insurance institution, agent or insurance-support organization prefers;
    (2) permit the individual to see and copy, in person, such recorded personal information pertaining to him or her or to obtain a copy of such recorded personal information by mail, whichever the individual prefers, unless such recorded personal information is in coded form, in which case an accurate translation in plain language shall be provided in writing;
    (3) disclose to the individual the identity, if recorded, of those persons to whom the insurance institution, agent or insurance-support organization has disclosed such personal information within 2 years prior to such request, and if the identity is not recorded, the names of those insurance institutions, agents, insurance-support organizations or other persons to whom such information is normally disclosed; and
    (4) provide the individual with a summary of the procedures by which he or she may request correction, amendment or deletion of recorded personal information.
    (B) Any personal information provided pursuant to subsection (A) above shall identify the source of the information if such source is an institutional source.
    (C) Medical-record information supplied by a medical-care institution or medical professional and requested under subsection (A), together with the identity of the medical professional or medical care institution which provided such information, shall be supplied either directly to the individual or to a medical professional designated by the individual and licensed to provide medical care with respect to the condition to which the information relates, whichever the insurance institution, agent or insurance-support organization prefers. If it elects to disclose the information to a medical professional designated by the individual, the insurance institution, agent or insurance-support organization shall notify the individual, at the time of the disclosure, that it has provided the information to the medical professional.
    (D) Except for personal information provided under Section 1011, an insurance institution, agent or insurance-support organization may charge a reasonable fee to cover the costs incurred in providing a copy of recorded personal information to individuals.
    (E) The obligations imposed by this Section upon an insurance institution or agent may be satisfied by another insurance institution or agent authorized to act on its behalf. With respect to the copying and disclosure of recorded personal information pursuant to a request under subsection (A), an insurance institution, agent or insurance-support organization may make arrangements with an insurance-support organization or a consumer reporting agency to copy and disclose recorded personal information on its behalf.
    (F) The rights granted to individuals in this Section shall extend to all natural persons to the extent information about them is collected and maintained by an insurance institution, agent or insurance-support organization in connection with an insurance transaction. The rights granted to all natural persons by this subsection shall not extend to information about them that relates to and is collected in connection with or in reasonable anticipation of a claim or civil or criminal proceeding involving them.
    (G) For purposes of this Section, the term "insurance-support organization" does not include "consumer reporting agency".
(Source: P.A. 82-108.)

215 ILCS 5/1010

    (215 ILCS 5/1010) (from Ch. 73, par. 1065.710)
    Sec. 1010. Correction, Amendment or Deletion of Recorded Personal Information. (A) Within 30 business days from the date of receipt of a written request from an individual to correct, amend or delete any recorded personal information about the individual within its possession, an insurance institution, agent or insurance-support organization shall either:
    (1) correct, amend or delete the portion of the recorded personal information in dispute; or
    (2) notify the individual of:
    (a) its refusal to make such correction, amendment or deletion,
    (b) the reasons for the refusal, and
    (c) the individual's right to file a statement as provided in subsection (C).
    (B) If the insurance institution, agent or insurance-support organization corrects, amends or deletes recorded personal information in accordance with paragraph (1) of subsection (A) above, the insurance institution, agent or insurance-support organization shall so notify the individual in writing and furnish the correction, amendment or fact of deletion to:
    (1) any person specifically designated by the individual who may have, within the preceding 2 years, received such recorded personal information;
    (2) any insurance-support organization whose primary source of personal information is insurance institutions, if the insurance-support organization has systematically received such recorded personal information from the insurance institution within the preceding 7 years; provided, however, that the correction, amendment or fact of deletion need not be furnished if the insurance-support organization no longer maintains recorded personal information about the individual; and
    (3) any insurance-support organization that furnished the personal information that has been corrected, amended or deleted.
    (C) Whenever an individual disagrees with an insurance institution's, agent's or insurance-support organization's refusal to correct, amend or delete recorded personal information, the individual shall be permitted to file with the insurance institution, agent or insurance-support organization:
    (1) a concise statement setting forth what the individual thinks is the correct, relevant or fair information, and
    (2) a concise statement of the reasons why the individual disagrees with the insurance institution's, agent's or insurance-support organization's refusal to correct, amend or delete recorded personal information.
    (D) In the event an individual files either statement as described in subsection (C) above, the insurance institution, agent or support organization shall:
    (1) file the statement with the disputed personal information and provide a means by which anyone reviewing the disputed personal information will be made aware of the individual's statement and have access to it, and
    (2) in any subsequent disclosure by the insurance institution, agent or support organization of the recorded personal information that is the subject of disagreement, clearly identify the matter or matters in dispute and provide the individual's statement along with the recorded personal information being disclosed; and
    (3) furnish the statement to the persons and in the manner specified in subsection (B) above.
    (E) The rights granted to individuals in this Section shall extend to all natural persons to the extent information about them is collected and maintained by an insurance institution, agent or insurance-support organization in connection with an insurance transaction. The rights granted to all natural persons by this subsection shall not extend to information about them that relates to and is collected in connection with or in reasonable anticipation of a claim or civil or criminal proceeding involving them.
    (F) For purposes of this Section, the term "insurance-support organization" does not include "consumer reporting agency".
(Source: P.A. 82-108.)

215 ILCS 5/1011

    (215 ILCS 5/1011) (from Ch. 73, par. 1065.711)
    Sec. 1011. Reasons for Adverse Underwriting Decisions. (A) In the event of an adverse underwriting decision the insurance institution or agent responsible for the decision shall:
    (1) either provide the applicant, policyholder or individual proposed for coverage with the specific reason or reasons for the adverse underwriting decision in writing or advise such person that upon written request he or she may receive the specific reason or reasons in writing, and
    (2) provide the applicant, policyholder or individual proposed for coverage with a summary of the rights established under subsection (B) and Sections 1009 and 1010 of this Article.
    (B) Upon receipt of a written request within 90 business days from the date of the mailing of notice or other communication of an adverse underwriting decision to an applicant, policyholder or individual proposed for coverage, the insurance institution or agent shall furnish to such person within 21 business days from the date of receipt of such written request:
    (1) the specific reason or reasons for the adverse underwriting decision, in writing, if such information was not initially furnished in writing pursuant to paragraph (1) of subsection (A);
    (2) the specific items of personal and privileged information that support those reasons; provided, however:
    (a) the insurance institution or agent shall not be required to furnish specific items of privileged information if it has reasonable suspicion, based upon specific information available for review by the Director, that the applicant, policyholder or individual proposed for coverage has engaged in criminal activity, fraud, material misrepresentation or material nondisclosure, and
    (b) specific items of medical-record information supplied by a medical-care institution or medical professional shall be disclosed either directly to the individual about whom the information relates or to a medical professional designated by the individual and licensed to provide medical care with respect to the condition to which the information relates, whichever the insurance institution or agent prefers; and
    (3) the names and addresses of the institutional sources that supplied the specific items of information pursuant to paragraph (2) of subsection (B); provided, however, that the identity of any medical professional or medical-care institution shall be disclosed either directly to the individual or to the designated medical professional, whichever the insurance institution or agent prefers.
    (C) The obligations imposed by this Section upon an insurance institution or agent may be satisfied by another insurance institution or agent authorized to act on its behalf.
    (D) When an adverse underwriting decision results solely from an oral request or inquiry, the explanation of reasons and summary of rights required by subsection (A) may be given orally.
(Source: P.A. 82-108.)

215 ILCS 5/1012

    (215 ILCS 5/1012) (from Ch. 73, par. 1065.712)
    Sec. 1012. Information Concerning Previous Adverse Underwriting Decisions. No insurance institution, agent or insurance-support organization may seek information in connection with an insurance transaction concerning:
    (A) any previous adverse underwriting decision experienced by an individual, or
    (B) any previous insurance coverage obtained by an individual through a residual market mechanism,
unless such inquiry also requests the reasons for any previous adverse underwriting decision or the reasons why insurance coverage was previously obtained through a residual market mechanism.
(Source: P.A. 81-1430.)

215 ILCS 5/1013

    (215 ILCS 5/1013) (from Ch. 73, par. 1065.713)
    Sec. 1013. Previous Adverse Underwriting Decisions. No insurance institution or agent may base an adverse underwriting decision in whole or in part:
    (A) on the fact of a previous adverse underwriting decision or on the fact that an individual previously obtained insurance coverage through a residual market mechanism; provided, however, an insurance institution or agent may base an adverse underwriting decision on further information obtained from an insurance institution or agent responsible for a previous adverse underwriting decision;
    (B) on personal information received from an insurance-support organization whose primary source of information is insurance institutions; provided, however, an insurance institution or agent may base an adverse underwriting decision on further personal information obtained as the result of information received from such insurance-support organization.
(Source: P.A. 82-108.)

215 ILCS 5/1014

    (215 ILCS 5/1014) (from Ch. 73, par. 1065.714)
    Sec. 1014. Disclosure Limitations and Conditions. An insurance institution, agent or insurance-support organization shall not disclose any personal or privileged information about an individual collected or received in connection with an insurance transaction unless the disclosure is:
    (A) with the written authorization of the individual, provided:
    (1) if such authorization is submitted by another insurance institution, agent or insurance-support organization, the authorization meets the requirements of Section 1007 of this Article, or
    (2) if such authorization is submitted by a person other than an insurance institution, agent or insurance-support organization, the authorization is:
    (a) dated,
    (b) signed by the individual, and
    (c) obtained one year or less prior to the date a disclosure is sought pursuant to this subsection; or
    (B) to a person other than an insurance institution, agent or insurance-support organization, provided such disclosure is reasonably necessary:
    (1) to enable such person to perform a business, professional or insurance function for the disclosing insurance institution, agent or insurance-support organization and such person agrees not to disclose the information further without the individual's written authorization unless the further disclosure:
    (a) would otherwise be permitted by this Section if made by an insurance institution, agent, or insurance-support organization, or
    (b) is reasonably necessary for such person to perform its function for the disclosing insurance institution, agent, or insurance-support organization, or
    (2) to enable such person to provide information to the disclosing insurance institution, agent, or insurance-support organization for the purpose of:
    (a) determining an individual's eligibility for an insurance benefit or payment, or
    (b) detecting or preventing criminal activity, fraud, material misrepresentation or material nondisclosure in connection with an insurance transaction; or
    (C) to an insurance institution, agent, insurance-support organization or self-insurer, provided the information disclosed is limited to that which is reasonably necessary:
    (1) to detect or prevent criminal activity, fraud, material misrepresentation or material nondisclosure in connection with insurance transactions, or
    (2) for either the disclosing or receiving insurance institution, agent or insurance-support organization to perform its function in connection with an insurance transaction involving the individual; or
    (D) to a medical care institution or medical professional for the purpose of:
    (1) verifying insurance coverage or benefits,
    (2) informing an individual of a medical problem of which the individual may not be aware, or
    (3) conducting an operations or services audit, provided only such information is disclosed as is reasonably necessary to accomplish the foregoing purposes; or
    (E) to an insurance regulatory authority; or
    (F) to a law enforcement or other governmental authority:
    (1) to protect the interests of the insurance institution, agent or insurance-support organization in preventing or prosecuting the perpetration of fraud upon it, or
    (2) if the insurance institution, agent or insurance-support organization reasonably believes that illegal activities have been conducted by the individual; or
    (G) otherwise permitted or required by law; or
    (H) in response to a facially valid administrative or judicial order, including a search warrant or subpoena; or
    (I) made for the purpose of conducting actuarial or research studies provided:
    (1) no individual may be identified in any actuarial or research report,
    (2) materials allowing the individual to be identified are returned or destroyed as soon as they are no longer needed, and
    (3) the actuarial or research organization agrees not to disclose the information unless the disclosure would otherwise be permitted by this Section if made by an insurance institution, agent or insurance-support organization; or
    (J) to a party or a representative of a party to a proposed or consummated sale, transfer, merger or consolidation of all or part of the business of the insurance institution, agent or insurance support organization, provided:
    (1) prior to the consummation of the sale, transfer, merger or consolidation only such information is disclosed as is reasonably necessary to enable the recipient to make business decisions about the purchase, transfer, merger or consolidation, and
    (2) the recipient agrees not to disclose the information unless the disclosure would otherwise be permitted by this Section if made by an insurance institution, agent or insurance-support organization; or
    (K) to a person whose only use of such information will be in connection with the marketing of a product or service, provided:
    (1) no medical-record information, privileged information, or personal information relating to an individual's character, personal habits, mode of living or general reputation is disclosed, and no classification derived from such information is disclosed,
    (2) the individual has been given an opportunity to indicate that he or she does not want personal information disclosed for marketing purposes and has given no indication that he or she does not want the information disclosed, and
    (3) the person receiving such information agrees not to use it except in connection with the marketing of a product or service; or
    (L) to an affiliate whose only use of the information will be in connection with an audit of the insurance institution or agent or the marketing of an insurance product or service, provided the affiliate agrees not to disclose the information for any other purpose or to unaffiliated persons; or
    (M) by a consumer reporting agency, provided: the disclosure is to a person other than an insurance institution or agent; or
    (N) to a group policyholder for the purpose of reporting claims experience or conducting an audit of the insurance institution's or agent's operations or services, provided the information disclosed is reasonably necessary for the group policyholder to conduct the review or audit; or
    (O) to a professional peer review organization for the purpose of reviewing the service or conduct of a medical-care institution or medical professional; or
    (P) to a governmental authority for the purpose of determining the individual's eligibility for health benefits for which the governmental authority may be liable; or
    (Q) to a certificateholder or policyholder for the purpose of providing information regarding the status of an insurance transaction; or
    (R) to a lienholder, mortgagee, assignee, lessee, or other person shown on the records of an insurance institution or agent as having a legal or beneficial interest in a policy of insurance; provided that information disclosed is limited to that which is reasonably necessary to permit such person to protect its interest in such policy.
(Source: P.A. 82-108.)

215 ILCS 5/1015

    (215 ILCS 5/1015) (from Ch. 73, par. 1065.715)
    Sec. 1015. Powers of Director. (A) The Director shall have power to examine and investigate into the affairs of every insurance institution or agent doing business in this State to determine whether the insurance institution or agent has been or is engaged in any conduct in violation of this Article.
    (B) The Director shall have the power to examine and investigate into the affairs of every insurance-support organization acting on behalf of an insurance institution or agent which either transacts business in this State or transacts business outside this State that has an effect on a person residing in this State, in order to determine whether such insurance-support organization has been or is engaged in any conduct in violation of this Article.
(Source: P.A. 81-1430.)

215 ILCS 5/1016

    (215 ILCS 5/1016) (from Ch. 73, par. 1065.716)
    Sec. 1016. Hearings, Witnesses, Appearances, Production of Books and Service of Process. (A) Whenever the Director has reason to believe that an insurance institution, agent or insurance-support organization has been or is engaged in conduct in this State which violates this Article, or if the Director believes that an insurance-support organization has been or is engaged in conduct outside this State which has an effect on a person residing in this State and violates this Article, the Director shall issue and serve upon such insurance institution, agent or insurance-support organization a statement of charges and notice of hearing to be held at a time and place fixed in the notice. Such hearing shall be conducted pursuant to Sections 401, 402 and 403 of this Act, and any applicable rules of the Department.
    (B) At the time and place fixed for such hearing the insurance institution, agent or insurance-support organization charged shall have an opportunity to answer the charges against it and present evidence on its behalf. Upon good cause shown, the Director shall permit any adversely affected person to intervene, appear and be heard at such hearing by counsel or in person.
(Source: P.A. 81-1430.)

215 ILCS 5/1017

    (215 ILCS 5/1017) (from Ch. 73, par. 1065.717)
    Sec. 1017. Service of Process - Insurance-Support Organizations. For the purpose of this Article, an insurance-support organization transacting business outside this State which has an effect on a person residing in this State shall be deemed to have appointed the Director to accept service of process on its behalf, provided the Director causes a copy of such service to be mailed forthwith by registered mail to the insurance-support organization at its last known principal place of business. The return postcard receipt for such mailing shall be sufficient proof that the same was properly mailed by the Director.
(Source: P.A. 81-1430.)

215 ILCS 5/1018

    (215 ILCS 5/1018) (from Ch. 73, par. 1065.718)
    Sec. 1018. Cease and Desist Orders and Reports. (A) If, after a hearing, the Director determines that the insurance institution, agent or insurance-support organization charged has engaged in conduct or practices in violation of this Article, he shall reduce his findings to writing and shall issue and cause to be served upon such insurance institution, agent or insurance-support organization a copy of such findings and an order requiring such insurance institution, agent or insurance-support organization to cease and desist from the conduct or practices constituting a violation of this Article.
    (B) If, after a hearing, the Director determines that the insurance institution, agent or insurance-support organization charged has not engaged in conduct or practices in violation of this Article, he shall prepare a written report which sets forth findings of fact and conclusions of law. Such report shall be served upon the insurance institution, agent or insurance-support organization charged and upon the person or persons, if any, whose rights under this Article were allegedly violated.
(Source: P.A. 81-1430.)

215 ILCS 5/1019

    (215 ILCS 5/1019) (from Ch. 73, par. 1065.719)
    Sec. 1019. Judicial Review. (1) Any order or decision made, issued or executed by the Director under this Article whereby any person or company is aggrieved is subject to review by the Circuit Court of Sangamon County.
    (2) The Administrative Review Law, as now or hereafter amended, and the rules adopted pursuant thereto, applies to and governs all proceedings for review of final administrative decisions of the Director provided for in this Section. The term "administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)

215 ILCS 5/1020

    (215 ILCS 5/1020) (from Ch. 73, par. 1065.720)
    Sec. 1020. Penalties.
    (A) In any case where a hearing pursuant to Section 1016 results in the finding of a knowing violation of this Article, the Director may, in addition to the issuance of a cease and desist order as prescribed in Section 1018, order payment of a monetary penalty of not more than $1,000 for each violation but not to exceed $20,000 in the aggregate for multiple violations.
    (B) Any person who violates a cease and desist order of the Director under Section 1018 of this Article may, after notice and hearing and upon order of the Director, be subject to one or more of the following penalties, at the discretion of the Director:
        (1) a monetary fine of not more than $20,000 for each
    
violation,
        (2) a monetary fine of not more than $100,000 if the
    
Director finds that violations have occurred with such frequency as to constitute a general business practice, or
        (3) suspension or revocation of an insurance
    
institution's or agent's license.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/1021

    (215 ILCS 5/1021) (from Ch. 73, par. 1065.721)
    Sec. 1021. Individual Remedies. (A) If any insurance institution, agent or insurance-support organization fails to comply with Sections 1009, 1010 or 1011 of this Article with respect to the rights granted under those Sections, any person whose rights are violated may apply to the circuit court of this State, or any other court of competent jurisdiction, for appropriate equitable relief.
    (B) An insurance institution, agent or insurance-support organization which discloses information in violation of Section 1014 of this Article shall be liable for damages sustained by the individual about whom the information relates; provided, however, that no individual shall be entitled to a monetary award which exceeds the actual damages sustained by the individual as a result of a violation of Section 1014 of this Article.
    (C) In any action brought pursuant to this Section, the court may award the cost of the action and reasonable attorney's fees to the prevailing party.
    (D) An action under this Section must be brought within 2 years from the date the alleged violation is or should have been discovered.
    (E) Except as specifically provided in this Section, there shall be no remedy or recovery available to individuals, in law or in equity, for occurrences constituting a violation of any provision of this Article.
(Source: P.A. 82-108.)

215 ILCS 5/1022

    (215 ILCS 5/1022) (from Ch. 73, par. 1065.722)
    Sec. 1022. Immunity. No cause of action in the nature of defamation, invasion of privacy or negligence shall arise against any person for disclosing personal or privileged information in accordance with this Article, nor shall such a cause of action arise against any person for furnishing personal or privileged information to an insurance institution, agent or insurance-support organization; provided, however, this Section shall provide no immunity for disclosing or furnishing false information with malice or willful intent to injure any person.
(Source: P.A. 82-108.)

215 ILCS 5/1023

    (215 ILCS 5/1023) (from Ch. 73, par. 1065.723)
    Sec. 1023. Obtaining Information Under False Pretenses. Any person who knowingly and willfully obtains information about an individual from an insurance institution, agent or insurance-support organization under false pretenses shall be guilty of a Class 4 felony.
(Source: P.A. 81-1430.)

215 ILCS 5/1023.5

    (215 ILCS 5/1023.5)
    Sec. 1023.5. Federal privacy protections.
    (A) In addition to the requirements of this Article, licensees shall comply with the privacy protection provisions of Title V of the federal Gramm-Leach-Bliley Act (Public Law 106-102, 106th Congress).
    (B) The Director shall have authority to enforce the requirements of the privacy protection provisions of Title V of the federal Gramm-Leach-Bliley Act, employing powers granted to him under this Article and this Code.
    (C) The Director shall make reasonable rules as may be necessary to make effective the privacy provisions of Title V of the federal Gramm-Leach-Bliley Act (Public Law 106-102, 106th Congress).
    (D) For purposes of this Section, "licensee" means all insurers, insurance producers, and other persons licensed or required to be licensed, authorized or required to be authorized, registered or required to be registered, or domiciled, pursuant to this Code or any other insurance law of this State administered by the Department. "Licensee" also includes unauthorized insurers who accept business placed through a licensed surplus line producer in this State, but only in regard to the surplus line placements placed pursuant to Section 445 of this Code. However, this Section does not apply to "service contract providers" as defined by the Service Contract Act.
(Source: P.A. 92-556, eff. 6-24-02.)

215 ILCS 5/1024

    (215 ILCS 5/1024) (from Ch. 73, par. 1065.724)
    Sec. 1024. This Article takes effect on July 1, 1981. The rights granted under Sections 1009, 1010 and 1014 of this Article shall take effect on July 1, 1981, regardless of the date of the collection or receipt of the information which is the subject of such Sections.
(Source: P.A. 81-1430.)

215 ILCS 5/Art. XLI

 
    (215 ILCS 5/Art. XLI heading)
ARTICLE XLI. RISK RETENTION ARRANGEMENTS FOR
BANKING ASSOCIATIONS

215 ILCS 5/1101

    (215 ILCS 5/1101) (from Ch. 73, par. 1065.801)
    Sec. 1101. Scope of Article. This Article applies only to trusts sponsored by domestic banking associations and organized under this Article to provide casualty insurance authorized under Section 5 of the Illinois Banking Act, as now or hereafter amended, for association member banks.
(Source: P.A. 84-1431.)

215 ILCS 5/1102

    (215 ILCS 5/1102) (from Ch. 73, par. 1065.802)
    Sec. 1102. Definitions. As used in this Article, the following terms have the following meanings:
    (1) "Banking association" means any Illinois corporation, whether for-profit or not-for-profit, which functions as a professional or trade association of dues-paying member commercial banks. For purposes of this Article, "banking association" does not include any corporation which directly or indirectly (a) accepts deposits which the depositor has a right to withdraw on demand by check or negotiable order, or (b) engages in the business of making loans, or both.
    (2) "Trust sponsor" means a banking association which has created a risk retention trust under this Article.
    (3) "Pool retention fund" means a separate fund maintained for payment of first dollar claims, up to a specific amount per claim ("specific retention") and up to an aggregate amount for a 12-month period ("aggregate retention").
    (4) "Contingency reserve fund" means a separate fund maintained for payment of claims in excess of the pool retention fund amount.
    (5) "Coverage grant" means the document describing specific coverages and terms of coverage which are provided by a risk retention trust created under this Article.
    (6) "Licensed service company" means an entity licensed under Section 464a of the Illinois Insurance Code to perform claims adjusting, loss control and data processing.
(Source: P.A. 84-1431.)

215 ILCS 5/1103

    (215 ILCS 5/1103) (from Ch. 73, par. 1065.803)
    Sec. 1103. Name. The corporate name of any trust organized under this Article shall not be the same as or deceptively similar to the name of any domestic insurance company or of any foreign or alien insurance company authorized to transact business in this State.
(Source: P.A. 84-1431.)

215 ILCS 5/1104

    (215 ILCS 5/1104) (from Ch. 73, par. 1065.804)
    Sec. 1104. Principal Office and Place of Business. The principal office of any trust organized under this Article shall be located in this State.
(Source: P.A. 84-1431.)

215 ILCS 5/1105

    (215 ILCS 5/1105) (from Ch. 73, par. 1065.805)
    Sec. 1105. Risk Retention Trust. (1) Any banking association which has been in existence for a period of not less than 2 years may create a risk retention trust for the pooling of risks in order to provide casualty coverage authorized under Section 5 of the Illinois Banking Act, as now or hereafter amended, for its member banks. Such trust shall be administered by at least 3 trustees who are appointed by the trust sponsor and who represent association member banks which have agreed in writing to participate in the trust.
    (2) The trustees shall appoint a qualified administrator who shall administer the affairs of the risk retention trust.
    (3) The trustees shall retain a licensed service company to perform claims adjusting, loss control and data processing.
    (4) The trust sponsor, the trustees and the trust administrator shall be fiduciaries of the trust.
    (5) Any trust created under this Article shall be consummated by a written trust agreement and shall be subject to the laws of this State governing the creation and operation of trusts, to the extent not inconsistent with this Article.
(Source: P.A. 84-1431.)

215 ILCS 5/1106

    (215 ILCS 5/1106) (from Ch. 73, par. 1065.806)
    Sec. 1106. Trust - Participation. (1) A banking association and its member banks may participate in any trust created under this Article if it:
    (a) Meets the underwriting standards for acceptance into the trust;
    (b) Files a written application for coverage, agreeing to meet all of the membership conditions of the trust;
    (c) Is a member of the association sponsoring the trust;
    (d) Agrees to meet the ongoing loss control provisions and risk pooling arrangements set forth by the trustees;
    (e) Pays its premium contribution on a timely basis as required; and
    (f) Pays its predetermined annual required contribution into the contingency reserve fund.
    (2) Any bank accepted for trust membership and participating in the trust under this Article shall be liable for payment to the trust of the amount of its annual premium contribution and its annual predetermined contingency reserve fund contribution.
(Source: P.A. 84-1431.)

215 ILCS 5/1107

    (215 ILCS 5/1107) (from Ch. 73, par. 1065.807)
    Sec. 1107. Trust - Coverage Grants - Payment of Claims. (1) No risk retention trust created under this Article may issue coverage grants until it has procured 100 bonafide applications for coverage with the first premium contribution in cash for each kind of coverage which the trust undertakes to write, and has a contingency reserve fund of at least $2,500,000. Every trust subject to this Article must have, and at all times maintain a pool retention fund at least equal to its unpaid liabilities and an unimpaired minimum contingency reserve fund of $1,500,000. The contingency reserve fund requirements shall be deemed satisfied if the required contribution into such fund by any participating member bank is obtained by a certificate of deposit redeemable by the trust in an amount not greater than the amount insured by the Federal Deposit Insurance Corporation.
    (2) Every coverage grant issued or delivered in this State by any trust subject to this Article shall provide for the liability of trust members to the extent that funds are needed to pay a member's share of the depleted contingency reserve fund needed to maintain the reserves required by this Section.
    (3) The Director may after notice and hearing suspend or revoke the license of any trust that fails to maintain the minimum reserves required by this Section.
    (4) All claims shall first be paid from the pool retention fund. If that fund becomes depleted, any additional claims shall be paid from the contingency reserve fund.
    (5) On the basis of an annual independent certified audit, the Director may require the risk retention trust to purchase insurance in amounts required to provide additional protection to member banks in excess of the contingency reserve fund.
(Source: P.A. 84-1431.)

215 ILCS 5/1108

    (215 ILCS 5/1108) (from Ch. 73, par. 1065.808)
    Sec. 1108. Trust; filing requirements; records.
    (1) Any risk retention trust created under this Article shall file with the Director:
        (a) A statement of intent to provide named coverages.
        (b) The trust agreement between the trust sponsor and
    
the trustees, detailing the organization and administration of the trust and fiduciary responsibilities.
        (c) Signed risk pooling agreements from each trust
    
member describing their intent to participate in the trust and maintain the contingency reserve fund.
        (d) By April 1 of each year a financial statement for
    
the preceding calendar year ending December 31, and a list of all beneficiaries during the year. The financial statement and report shall be in such form as the Director of Insurance may prescribe. The truth and accuracy of the financial statement shall be attested to by each trustee. Each Risk Retention Trust shall file with the Director by June 1 an opinion of an independent certified public accountant on the financial condition of the Risk Retention Trust for the most recent calendar year and the results of its operations, changes in financial position and changes in capital and surplus for the year then ended in conformity with accounting practices permitted or prescribed by the Illinois Department of Insurance.
        (e) The name of a bank or trust company with whom the
    
trust will enter into an escrow agreement which shall state that the contingency reserve fund will be maintained at the levels prescribed in this Article.
        (f) Copies of coverage grants it will issue.
    (2) The Director of Insurance shall charge, collect and give proper acquittances for the payment of the following fees and charges:
        (a) For filing trust instruments, amendments thereto
    
and financial statement and report of the trustees, $50.
        (b) For copies of papers or records per page, $2.
        (c) For certificate to copy of paper, $10.
        (d) For filing an application for the licensing of a
    
risk retention trust, $1,000.
    (3) The trust shall keep its books and records in accordance with the provisions of Section 133 of this Code. The Director may examine such books and records from time to time as provided in Sections 132 through 132.7 of this Code and may charge the expense of such examination to the trust as provided in subsection (3) of Section 408 of this Code.
    (4) Trust funds established under this Section and all persons interest therein or dealing therewith shall be subject to the provisions of Sections 133, 144.1, 149, 401, 401.1, 402, 403, 403A, 412, and all of the provisions of Articles VII, VIII, XII 1/2 and XIII of the Code, as amended. Except as otherwise provided in this Section, trust funds established under and which fully comply with this Section, shall not be subjected to any other provision of the Code.
    (5) The Director of Insurance may make reasonable rules and regulations pertaining to the standards of coverage and administration of the trust authorized by this Section. Such rules may include but need not be limited to reasonable standards for fiduciary duties of the trustees, standards for the investment of funds, limitation of risks assumed, minimum size, capital, surplus, reserves, and contingency reserves.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/1109

    (215 ILCS 5/1109) (from Ch. 73, par. 1065.809)
    Sec. 1109. Illinois Insurance Guaranty Fund - Inapplicability. The provisions of Article XXXIV of this Code shall not apply to any risk retention trust created under this Article.
(Source: P.A. 84-1431.)

215 ILCS 5/Art. XLII

 
    (215 ILCS 5/Art. XLII heading)
ARTICLE XLII.
INSURANCE COST CONTAINMENT

215 ILCS 5/1200

    (215 ILCS 5/1200) (from Ch. 73, par. 1065.900)
    Sec. 1200. This Article shall be known and may be cited as the "Illinois Insurance Cost Containment Act".
(Source: P.A. 84-1431.)

215 ILCS 5/1201

    (215 ILCS 5/1201) (from Ch. 73, par. 1065.901)
    Sec. 1201. Purpose of Article. The purpose of this Article is to promote the public welfare by studying the relationship of insurance premium and related income as compared to insurance costs and expenses. The General Assembly finds and declares that stabilizing the cost of insurance is a vital concern to the people of this State.
    It is the legislative intent, pursuant to this declared public concern, to develop measures which will stabilize prices while continuing to provide quality insurance products to all sectors of the citizenry. It is the express intent of this Article to permit and encourage competition between companies on a sound financial basis to the fullest extent possible and to establish a mechanism to ensure the provision of adequate insurance at reasonable rates to the citizens of this State.
    The General Assembly finds that while the gathering of insurance cost data has been attempted on a voluntary basis in the past, the lack of a uniform system for the collection and analysis of data and the lack of full participation by insurers has led to inadequate and unusable data. In order to remedy this problem, the General Assembly find it necessary to create a mandated uniform system in Illinois for the collection, analysis and distribution of insurance cost data.
(Source: P.A. 84-1431.)

215 ILCS 5/1202

    (215 ILCS 5/1202) (from Ch. 73, par. 1065.902)
    Sec. 1202. Duties. The Director shall:
        (a) determine the relationship of insurance premiums
    
and related income as compared to insurance costs and expenses and provide such information to the General Assembly and the general public;
        (b) study the insurance system in the State of
    
Illinois, and recommend to the General Assembly what it deems to be the most appropriate and comprehensive cost containment system for the State;
        (c) respond to the requests by agencies of government
    
and the General Assembly for special studies and analysis of data collected pursuant to this Article. Such reports shall be made available in a form prescribed by the Director. The Director may also determine a fee to be charged to the requesting agency to cover the direct and indirect costs for producing such a report, and shall permit affected insurers the right to review the accuracy of the report before it is released. The fees shall be deposited into the Technology Management Revolving Fund and credited to the account of the Department of Insurance;
        (d) make an interim report to the General Assembly no
    
later than August 15, 1987, and an annual report to the General Assembly no later than July 1 every year thereafter which shall include the Director's findings and recommendations regarding its duties as provided under subsections (a), (b), and (c) of this Section.
(Source: P.A. 99-642, eff. 7-28-16; 100-23, eff. 7-6-17.)

215 ILCS 5/1203

    (215 ILCS 5/1203) (from Ch. 73, par. 1065.903)
    Sec. 1203. Powers and Additional Duties. (a) The Director may enter into any agreement with any corporation, association or other entity he or she deems appropriate to undertake the process described in this Article for the compilation and analysis of data collected by the Department and may conduct or contract for studies on insurance-related questions carried out in pursuance of the purposes of this Article. The agreement may provide for the corporation, association or entity to prepare and distribute or make available data to insurers, government and the general public.
    (b) The Director shall require, and the designated corporation, association or entity shall prepare, semi-annual basic reports in the aggregate on insurance cost trends in Illinois. The Director shall provide these reports to the General Assembly, and upon request, to the public.
    (c) Prior to the release or dissemination of these reports, the Director or the designated corporation, association or entity, shall permit insurers the opportunity to verify the accuracy of any information pertaining to the insurer. The insurer may submit to the Director any corrections or errors in the compilation of the data together with any supporting evidence and documents the insurer may provide.
(Source: P.A. 84-1431.)

215 ILCS 5/1204

    (215 ILCS 5/1204) (from Ch. 73, par. 1065.904)
    Sec. 1204. (A) The Director shall promulgate rules and regulations which shall require each insurer licensed to write property or casualty insurance in the State and each syndicate doing business on the Illinois Insurance Exchange to record and report its loss and expense experience and other data as may be necessary to assess the relationship of insurance premiums and related income as compared to insurance costs and expenses. The Director may designate one or more rate service organizations or advisory organizations to gather and compile such experience and data. The Director shall require each insurer licensed to write property or casualty insurance in this State and each syndicate doing business on the Illinois Insurance Exchange to submit a report, on a form furnished by the Director, showing its direct writings in this State and companywide.
    (B) Such report required by subsection (A) of this Section may include, but not be limited to, the following specific types of insurance written by such insurer:
        (1) Political subdivision liability insurance
    
reported separately in the following categories:
            (a) municipalities;
            (b) school districts;
            (c) other political subdivisions;
        (2) Public official liability insurance;
        (3) Dram shop liability insurance;
        (4) Day care center liability insurance;
        (5) Labor, fraternal or religious organizations
    
liability insurance;
        (6) Errors and omissions liability insurance;
        (7) Officers and directors liability insurance
    
reported separately as follows:
            (a) non-profit entities;
            (b) for-profit entities;
        (8) Products liability insurance;
        (9) Medical malpractice insurance;
        (10) Attorney malpractice insurance;
        (11) Architects and engineers malpractice insurance;
    
and
        (12) Motor vehicle insurance reported separately for
    
commercial and private passenger vehicles as follows:
            (a) motor vehicle physical damage insurance;
            (b) motor vehicle liability insurance.
    (C) Such report may include, but need not be limited to the following data, both specific to this State and companywide, in the aggregate or by type of insurance for the previous year on a calendar year basis:
        (1) Direct premiums written;
        (2) Direct premiums earned;
        (3) Number of policies;
        (4) Net investment income, using appropriate
    
estimates where necessary;
        (5) Losses paid;
        (6) Losses incurred;
        (7) Loss reserves:
            (a) Losses unpaid on reported claims;
            (b) Losses unpaid on incurred but not reported
        
claims;
        (8) Number of claims:
            (a) Paid claims;
            (b) Arising claims;
        (9) Loss adjustment expenses:
            (a) Allocated loss adjustment expenses;
            (b) Unallocated loss adjustment expenses;
        (10) Net underwriting gain or loss;
        (11) Net operation gain or loss, including net
    
investment income;
        (12) Any other information requested by the Director.
    (C-3) Additional information by an advisory organization as defined in Section 463 of this Code.
        (1) An advisory organization as defined in Section
    
463 of this Code shall report annually the following information in such format as may be prescribed by the Secretary:
            (a) paid and incurred losses for each of the past
        
10 years;
            (b) medical payments and medical charges, if
        
collected, for each of the past 10 years;
            (c) the following indemnity payment information:
        
cumulative payments by accident year by calendar year of development. This array will show payments made and frequency of claims in the following categories: medical only, permanent partial disability (PPD), permanent total disability (PTD), temporary total disability (TTD), and fatalities;
            (d) injuries by frequency and severity;
            (e) by class of employee.
        (2) The report filed with the Secretary of Financial
    
and Professional Regulation under paragraph (1) of this subsection (C-3) shall be made available, on an aggregate basis, to the General Assembly and to the general public. The identity of the petitioner, the respondent, the attorneys, and the insurers shall not be disclosed.
        (3) Reports required under this subsection (C-3)
    
shall be filed with the Secretary no later than September 1 in 2006 and no later than September 1 of each year thereafter.
    (D) In addition to the information which may be requested under subsection (C), the Director may also request on a companywide, aggregate basis, Federal Income Tax recoverable, net realized capital gain or loss, net unrealized capital gain or loss, and all other expenses not requested in subsection (C) above.
    (E) Violations - Suspensions - Revocations.
        (1) Any company or person subject to this Article,
    
who willfully or repeatedly fails to observe or who otherwise violates any of the provisions of this Article or any rule or regulation promulgated by the Director under authority of this Article or any final order of the Director entered under the authority of this Article shall by civil penalty forfeit to the State of Illinois a sum not to exceed $2,000. Each day during which a violation occurs constitutes a separate offense.
        (2) No forfeiture liability under paragraph (1) of
    
this subsection may attach unless a written notice of apparent liability has been issued by the Director and received by the respondent, or the Director sends written notice of apparent liability by registered or certified mail, return receipt requested, to the last known address of the respondent. Any respondent so notified must be granted an opportunity to request a hearing within 10 days from receipt of notice, or to show in writing, why he should not be held liable. A notice issued under this Section must set forth the date, facts and nature of the act or omission with which the respondent is charged and must specifically identify the particular provision of this Article, rule, regulation or order of which a violation is charged.
        (3) No forfeiture liability under paragraph (1) of
    
this subsection may attach for any violation occurring more than 2 years prior to the date of issuance of the notice of apparent liability and in no event may the total civil penalty forfeiture imposed for the acts or omissions set forth in any one notice of apparent liability exceed $100,000.
        (4) All administrative hearings conducted pursuant to
    
this Article are subject to 50 Ill. Adm. Code 2402 and all administrative hearings are subject to the Administrative Review Law.
        (5) The civil penalty forfeitures provided for in
    
this Section are payable to the General Revenue Fund of the State of Illinois, and may be recovered in a civil suit in the name of the State of Illinois brought in the Circuit Court in Sangamon County or in the Circuit Court of the county where the respondent is domiciled or has its principal operating office.
        (6) In any case where the Director issues a notice of
    
apparent liability looking toward the imposition of a civil penalty forfeiture under this Section that fact may not be used in any other proceeding before the Director to the prejudice of the respondent to whom the notice was issued, unless (a) the civil penalty forfeiture has been paid, or (b) a court has ordered payment of the civil penalty forfeiture and that order has become final.
        (7) When any person or company has a license or
    
certificate of authority under this Code and knowingly fails or refuses to comply with a lawful order of the Director requiring compliance with this Article, entered after notice and hearing, within the period of time specified in the order, the Director may, in addition to any other penalty or authority provided, revoke or refuse to renew the license or certificate of authority of such person or company, or may suspend the license or certificate of authority of such person or company until compliance with such order has been obtained.
        (8) When any person or company has a license or
    
certificate of authority under this Code and knowingly fails or refuses to comply with any provisions of this Article, the Director may, after notice and hearing, in addition to any other penalty provided, revoke or refuse to renew the license or certificate of authority of such person or company, or may suspend the license or certificate of authority of such person or company, until compliance with such provision of this Article has been obtained.
        (9) No suspension or revocation under this Section
    
may become effective until 5 days from the date that the notice of suspension or revocation has been personally delivered or delivered by registered or certified mail to the company or person. A suspension or revocation under this Section is stayed upon the filing, by the company or person, of a petition for judicial review under the Administrative Review Law.
(Source: P.A. 103-426, eff. 8-4-23.)

215 ILCS 5/1205

    (215 ILCS 5/1205) (from Ch. 73, par. 1065.905)
    Sec. 1205. Employees and Professional Consultants. The Department may employ and fix the compensation of such employees, and may enter into contractual agreements with technical and professional consultants as it deems necessary to expedite the purposes of this Article.
(Source: P.A. 84-1431.)

215 ILCS 5/1206

    (215 ILCS 5/1206) (from Ch. 73, par. 1065.906)
    Sec. 1206. Expenses. The companies required to file reports under this Article shall pay a reasonable fee established by the Director sufficient to cover the total cost of the Department incident to or associated with the administration and enforcement of this Article, including the collection, analysis and distribution of the insurance cost data, the conversion of hard copy reports to tape, and the compilation and analysis of basic reports. The Director may establish a schedule of fees for this purpose. Expenses for additional reports shall be billed to those requesting the reports. Any such fees collected under this Section shall be paid to the Director of Insurance and deposited into the Technology Management Revolving Fund and credited to the account of the Department of Insurance.
(Source: P.A. 100-23, eff. 7-6-17.)

215 ILCS 5/Art. XLIII

 
    (215 ILCS 5/Art. XLIII heading)
ARTICLE XLIII.
Mortgage Insurance Consolidation

215 ILCS 5/1300

    (215 ILCS 5/1300) (from Ch. 73, par. 1065.1000)
    Sec. 1300. Title. This Article may be cited as the Mortgage Insurance Consolidation Law.
(Source: P.A. 86-378.)

215 ILCS 5/1301

    (215 ILCS 5/1301) (from Ch. 73, par. 1065.1001)
    Sec. 1301. Purpose. The purpose of this Article is to protect the interests of Illinois insureds by:
    (1) establishing minimum standards and procedures for the effectuation of mortgage insurance consolidations;
    (2) establishing disclosure requirements specific to mortgage insurance consolidations and requiring insurers to make such disclosures on a timely basis;
    (3) clarifying the applicability of the unfair rate discrimination provisions of this Code to consolidations involved in loan transfers so as to prevent premium increases for consumers resulting from mandatory premium recalculation;
    (4) requiring that group mortgage life insurance certificates contain minimum standard provisions including conversion rights; and
    (5) preventing the arbitrary termination of mortgage insurance coverage in connection with consolidations.
(Source: P.A. 86-378.)

215 ILCS 5/1302

    (215 ILCS 5/1302) (from Ch. 73, par. 1065.1002)
    Sec. 1302. Scope. (a) This Article applies:
    (1) To all insurance companies authorized to transact the business of insurance in this State of the kind or kinds of business described in Class 1(a) and (b) and Class 2(a) of Section 4 of this Code except for the kind or kinds of business described in Article IX 1/2 of this Code.
    (2) To all mortgage insurance coverage offered, issued, or issued for delivery in this State, by mail or otherwise, in connection with consolidations regardless of whether the financial institution involved is located in or outside Illinois.
    (3) To all consolidations whether the old coverage is provided under an individual or group policy.
    (b) Except as otherwise specifically provided, it is not intended that this Article conflict with or supersede any other provisions of this Code, or any rules promulgated by the Department of Insurance implementing any such provisions.
(Source: P.A. 86-378.)

215 ILCS 5/1303

    (215 ILCS 5/1303) (from Ch. 73, par. 1065.1003)
    Sec. 1303. Definitions. The following definitions shall apply to this Article:
    "Consolidation" means any transaction in which a financial institution makes its premium collection services available to its mortgage debtors in connection with a particular insurer's ("new insurer") offer of mortgage insurance, which offer is made to debtors who, immediately prior to the offer, had mortgage insurance with another insurer ("old insurer") and were paying premiums for that insurance with their monthly mortgage payments.
    "Financial institution" or "servicer" means any entity or organization that services mortgage loans by collecting and accounting for monthly mortgage insurance premiums as part of the debtor's monthly mortgage payment for one or more insurers.
    "Insured" means the individual loan customer or certificate holder.
    "Loan transfer" means a transaction in which the servicing of a block of mortgage loans is transferred from one servicer to another servicer. This shall include, but not be limited to, mergers or acquisitions.
    "Loan transfer consolidation" means a consolidation in which coverage is limited to insureds whose mortgage loans have been sold or transferred in the secondary market from one servicer to another.
    "Group-to-group consolidation" means a consolidation in which coverages under both the old plan and the new plan is provided under group policies.
    "Mortgage insurance" means mortgage life insurance (term or ordinary), mortgage disability insurance, mortgage accidental death insurance, or any combination thereof, including both individual and group policies, and any certificates issued thereunder, on credit transactions of more than 10 years duration and written in connection with a credit transaction that is secured by a first mortgage or deed of trust and made to finance the purchase of real property or the construction of a dwelling thereon or to refinance a prior credit transaction made for such a purpose.
    "New coverage" or "new plan" means the mortgage insurance coverage or plan for which a financial institution collects premium beginning on the effective date of a consolidation.
    "New insurer" means any insurer who offers mortgage insurance coverage to borrowers of the financial institution who can no longer remit monthly premiums for the old insurer along with their monthly mortgage payment.
    "Old coverage" or "old plan" means the mortgage insurance coverage or plan for which a financial institution collects premiums immediately prior to a consolidation.
    "Old insurer" means any insurer for whom a financial institution will no longer make its premium collection facilities available for all or some of the insurer's policyholders or certificate holders.
(Source: P.A. 100-201, eff. 8-18-17.)

215 ILCS 5/1304

    (215 ILCS 5/1304) (from Ch. 73, par. 1065.1004)
    Sec. 1304. General requirements. Except as provided in Section 1305, no insurer shall participate in any consolidation unless, in addition to all other requirements provided by law, it complies with the following:
    (1) The new insurer must calculate premiums for the new coverage on the basis of its own rates, the prospective insured's then attained age, if applicable, and the amount of insurance offered.
    (2) Notice of the new premium shall be mailed, together with the offer of new coverage, to the prospective insured at least 30 days prior to the effective date of the new coverage.
    (3) The new coverage shall be put into effect only after the new insurer receives an application which has been signed by the prospective insured.
    (4) Whenever the existing coverage is provided under individual policies, the new insurer shall comply with the requirements of Part 917 of Title 50 of the Illinois Administrative Code, promulgated by the Department of Insurance.
    (5) All riders which are a part of the existing insurance shall be offered without proof of insurability to all policyholders (or certificate holders) obtained by consolidation, including, but not limited to, waiver of premium and accidental death insurance.
    (6) Prospective insureds shall be given the option to name the beneficiary of their choice by the new insurer, if the previous beneficiary is other than a financial institution.
    (7) Regulations including, but not limited to, those promulgated by the Department of Insurance implementing Sections 143, 149, 151, 236, 237, 421, 424 and 507.1 of this Code concerning misrepresentations to any policyholder for the purpose of inducing or tending to induce such policyholder to lapse, forfeit or surrender his insurance, unfair or deceptive practices, complaints, solicitation and replacement of life insurance, compensation, and rebating shall be complied with.
(Source: P.A. 86-378.)

215 ILCS 5/1305

    (215 ILCS 5/1305) (from Ch. 73, par. 1065.1005)
    Sec. 1305. Loan transfer consolidations. In a consolidation conducted as a result of a loan transfer, the offer of new coverage may be based on the same premium the insured was paying for his old coverage only if, in addition to all other requirements provided by law, the following conditions are met:
    (1) Both the old and the new coverage must be provided under a group policy.
    (2) An offer of new coverage must be made as soon as reasonably possible after the loan transfer. If an offer of new coverage is not made within 30 days after the loan transfer, or at least 30 days prior to the proposed effective date of the new coverage, the insurer shall notify the debtor, in writing, that he has the right to an unconditional refund of all premiums paid for the new coverage as long as he exercises that right, in writing, within 30 days from the date of the notification.
    (3) The new coverage offered to the prospective insured must be the same as the old coverage, including all supplemental benefits provided under the old plan. If the coverage offered is not the same, then all the requirements of Section 1304 shall apply.
    (4) In addition to the requirements of Section 1307, the certificate shall contain the following notice, printed in bold type on page one of the certificate:
IMPORTANT NOTICE
    This certificate is issued to you in connection with a mortgage insurance consolidation. It is the intention of the Company to provide you group coverage which is equal to or better than the group coverage you had before. To the extent the benefits provided or the provisions of your prior certificate of insurance are more liberal than those under this certificate, the provisions of your prior certificate will control. Therefore, you should keep your old certificate along with this certificate for comparison purposes.
    (5) The information contained in the notice prescribed by paragraph (4) shall also be disclosed in writing (separate from the certificate of insurance) to each prospective insured at the time the offer of new coverage is made.
    (6) Only the group coverage written in connection with the loans which are the subject of the loan transfer may be consolidated pursuant to this Section.
    (7) Payment of the required premium shall constitute acceptance of the new coverage if:
    (A) such acceptance mechanism is clearly explained to the debtor; and
    (B) All other disclosure requirements of this Article are met.
    (8) Regulations including, but not limited to, those promulgated by the Department of Insurance implementing Sections 143, 149, 151, 236, 237, 421, 424 and 507.1 of this Code concerning misrepresentations to any policyholder for the purpose of inducing or tending to induce such policyholder to lapse, forfeit or surrender his insurance, unfair or deceptive practices, complaints, solicitation and replacement of life insurance, compensation and rebating shall be complied with.
    (9) If an insurer charges debtor insureds the same premium for the new coverage that they were paying for the old coverage, and, as a result, debtor insureds of a financial institution are charged different premium rates for the same coverage, such rate differences shall not constitute unfair discrimination under Sections 236 and 364 of this Code provided all the other applicable requirements of this Code are met.
(Source: P.A. 86-378.)

215 ILCS 5/1306

    (215 ILCS 5/1306) (from Ch. 73, par. 1065.1006)
    Sec. 1306. Out-of-state consolidations. If Illinois residents whose loans are serviced outside Illinois are involved in a group-to-group consolidation by an out-of-state servicer, Section 1305 may be employed if the Illinois residents are an incidental part of the consolidation. Otherwise the provisions of this Article shall apply to any consolidation insofar as it involves Illinois residents. For purposes of this provision "incidental" shall mean that the Illinois residents comprise less than 25% or 100 lives of the total lives involved in the consolidation, whichever is less.
(Source: P.A. 86-378.)

215 ILCS 5/1307

    (215 ILCS 5/1307) (from Ch. 73, par. 1065.1007)
    Sec. 1307. Group certificates. No insurer may participate in a group-to-group consolidation or a loan transfer consolidation unless in addition to all other requirements provided by law, it complies with the following:
    (1) A group certificate must be delivered to each debtor insured under the new plan, which certificate shall include the following information:
    (A) the name or names of the single or joint insureds;
    (B) identification of the insured mortgage;
    (C) the amount of insurance under the new plan;
    (D) the premium for the new coverage;
    (E) the effective date of the new coverage;
    (F) the beneficiary for the new coverage.
    (2) The new coverage offered to the prospective insured must be the same coverage as the old coverage, including all supplemental benefits, or the same type of coverage as the old coverage, whichever is otherwise required by this Article.
    (3) A group certificate evidencing the new coverage may not include a contestability clause or, in the case of mortgage life insurance, a provision excluding suicide.
(Source: P.A. 86-378.)

215 ILCS 5/1308

    (215 ILCS 5/1308) (from Ch. 73, par. 1065.1008)
    Sec. 1308. Conversion privilege. Notwithstanding the provisions of Section 231.1(H) of this Code, all group mortgage life insurance policies and any certificates issued thereunder shall include a conversion privilege permitting a debtor insured to convert, without evidence of insurability, to an individual policy of decreasing term insurance within 30 days of the date the debtor insured's group coverage is terminated for any reason other than the nonpayment of premiums. The initial amount of coverage under the individual policy shall be an amount equal to the amount of coverage terminated under the group policy and shall decrease over a term that corresponds with the scheduled term of the insured debtor's mortgage loan. The premium for the individual policy shall be the same premium the debtor insured was paying under the group policy.
(Source: P.A. 86-378.)

215 ILCS 5/1309

    (215 ILCS 5/1309) (from Ch. 73, par. 1065.1009)
    Sec. 1309. Required disclosures. (a) In conjunction with the offer of new coverage involving any consolidation, the new insurer shall disclose in writing to each insured under the old plan or plans at least 30 days prior to the effective date of the new coverage the following:
    (1) Identification of the insured mortgage.
    (2) The name of the insured or insureds.
    (3) Name of the owner of the individual policy or master policy (if group insurance) under both the new and old plans, if known.
    (4) The premium for the new and old coverage.
    (5) Amount of coverage for both the new and old plans. If the amount of coverage for the old plan is not known, a statement that the amount may be scheduled and it may be less than or greater than the amount of the loan and the insured should check the policy schedule for an exact amount of coverage.
    (6) Effective dates of the old coverage if the contestable or suicide period have not expired as of the effective date of the new coverage. If the new insurer waives the contestable and suicide period, then the effective date of the old coverage does not need to be disclosed.
    (7) Name of the beneficiary under the old plan, if known.
    (8) A statement as to whether the old plan was an individual or group plan and a statement as to whether the new plan is an individual or a group plan.
    (9) A statement that neither the old plan or new plan is required.
    (10) A statement that the prospective insured may have the right to continue or convert his old coverage by paying premiums directly to the old insurer, and what the prospective insured must do to keep the old coverage in effect including, but not limited to, the name and address of the company involved, the policy number or other information which reasonably identifies the insured's plan of coverage, the amount of the premium and where it is to be sent.
    (11) A statement that the mortgage payment will be reduced by the amount of the old plan premium if the new plan is not accepted.
    (12) Name and home office address of the new and old insurer, as well as the address and phone number for the customer services office for Illinois insureds.
    (13) The effective date of the new coverage.
    (14) Whether premium rates under the new plan are guaranteed.
    (15) Material differences, if any between the new plan and the old plan.
    (b) Any insurer which fails to provide the written notice required by subsection (a) at least 30 days prior to the effective date of the new coverage shall notify the debtor, in writing, that he has the right to an unconditional refund of all premiums paid for the new coverage as long as he exercises that right, in writing, within 30 days from that notification.
(Source: P.A. 86-378.)

215 ILCS 5/1310

    (215 ILCS 5/1310) (from Ch. 73, par. 1065.1010)
    Sec. 1310. Compensation. No sponsorship fees, or other special fees designed to induce their participation, shall be paid to a financial institution in connection with any mortgage consolidation, and any compensation paid to either the financial institution or any of its representatives shall be only in accordance with Section 151 and all other applicable provisions of this Code.
(Source: P.A. 86-378.)

215 ILCS 5/1311

    (215 ILCS 5/1311) (from Ch. 73, par. 1065.1011)
    Sec. 1311. No group policy or group certificate of mortgage insurance used in connection with a consolidation, nor any application, endorsement or rider which becomes a part of any such group policy or certificate, may be issued or delivered in this State until a copy of the form has been filed with and approved by the Director.
(Source: P.A. 86-378.)

215 ILCS 5/1312

    (215 ILCS 5/1312) (from Ch. 73, par. 1065.1012)
    Sec. 1312. The Director is authorized to adopt such rules governing mortgage insurance consolidations as he deems necessary to implement or enforce this Article.
(Source: P.A. 86-378.)

215 ILCS 5/Art. XLIV

 
    (215 ILCS 5/Art. XLIV heading)
Article XLIV. FINANCIAL INSTITUTIONS
INSURANCE SALES LAW

215 ILCS 5/1400

    (215 ILCS 5/1400)
    Sec. 1400. Title. This Article may be cited as the Financial Institutions Insurance Sales Law.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1401

    (215 ILCS 5/1401)
    Sec. 1401. Purpose. The purpose of this Article is to increase the availability of insurance products to the citizens of this State by expanding those businesses authorized to sell insurance products to include financial institutions, and to protect the interests of the citizens of this State by regulating their authority to do so. This Article does not apply to activities or services conducted in this State by or for a financial institution that do not require licensure as an insurance producer, temporary insurance producer, limited insurance representative, or registered firm.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1402

    (215 ILCS 5/1402)
    Sec. 1402. Definitions. For the purposes of this Article:
    "Financial institution" means:
        (1) a State bank, a national bank, or an out-of-state
    
bank, as those terms are defined in the Illinois Banking Act, or any subsidiary of a State bank, a national bank, or an out-of-state bank;
        (2) a foreign banking corporation, as that term is
    
defined in the Foreign Banking Office Act, or any subsidiary of a foreign banking corporation;
        (3) a corporate fiduciary, as that term is defined in
    
the Corporate Fiduciary Act;
        (4) a savings bank organized under the Savings Bank
    
Act, an out-of-state savings bank chartered under the laws of a state other than Illinois, a territory of the United States, or the District of Columbia, or a federal savings bank organized under federal law, or any subsidiary of a savings bank, an out-of-state savings bank or a federal savings bank;
        (5) an association or federal association, as those
    
terms are defined in the Illinois Savings and Loan Act of 1985, or any subsidiary of an association or federal association;
        (6) an out-of-state savings and loan association
    
chartered under the laws of a state other than Illinois, a territory of the United States or the District of Columbia, or a federal savings and loan association organized under federal law whose principal business office is located outside of Illinois, or any subsidiary of an out-of-state savings and loan association or federal savings and loan association whose principal business office is located outside of Illinois; or
        (7) a credit union as defined in the Illinois Credit
    
Union Act, or any subsidiary of a credit union.
    To the extent that any entity other than a financial institution conducts insurance activities in this State on behalf of or on the premises of the financial institution, such entity shall be subject to this Article for the purposes of those activities.
    "Insurance" means all lines of insurance defined and regulated as insurance under this Code, but for the purposes of this Article, "insurance" shall not include the following lines of insurance, provided that this paragraph shall not be deemed to preclude or otherwise limit regulation of the following lines of insurance pursuant to and to the extent otherwise provided by any other insurance law of this State:
        (1) credit life, credit accident and health, credit
    
involuntary unemployment, credit casualty and credit property insurance;
        (2) extended service contracts and warranty
    
agreements;
        (3) insurance obtained by the debtor to provide
    
payment for the difference between the remaining balance on a loan or other extension of credit and the amount of insurance coverage on the collateral securing the loan or other extension of credit;
        (4) insurance placed by a financial institution on
    
collateral used in connection with a loan or other extension of credit when a debtor breaches the contractual obligation to provide that insurance;
        (5) title insurance regulated by the Title Insurance
    
Act; and
        (6) private mortgage insurance and financial
    
guarantee insurance.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1403

    (215 ILCS 5/1403)
    Sec. 1403. Licensure requirements for financial institutions.
    (a) A financial institution transacting insurance business in this State shall register with the Director pursuant to the Illinois Insurance Code and shall be subject to the laws, rules, and penalties of the Illinois Insurance Code.
    (b) The solicitation and sale of insurance by a financial institution shall be conducted only by individuals who have been issued and maintain an insurance producer's license pursuant to the Illinois Insurance Code and shall be subject to the laws, rules, and penalties of the Illinois Insurance Code.
    (c) For the purposes of this Section, a "financial institution" means the subsidiary of a financial institution when the financial institution is transacting insurance business in this State only through the subsidiary. For the purposes of Section 499.1 of the Illinois Insurance Code, a financial institution shall be deemed to be a corporation.
    (d) Nothing in Section 500-100 of this Code shall be construed to require a limited lines producer license or any other form or class of producer's license for financial institutions, or their employees, if the financial institution has purchased or sponsored a group credit life, credit accident and health, credit casualty, credit property, or other group credit insurance policy or program under which the financial institution enrolls or performs other administrative services, or both, to enable individuals to purchase insurance coverage under the group credit insurance policy sold by a licensed producer in compliance with Section 155.56. A financial institution that performs enrollment or other administrative services, or both, with respect to its group credit insurance policies or programs shall be deemed to be in compliance with paragraph (2) of subsection (b) of Section 500-20 of this Code.
(Source: P.A. 100-349, eff. 8-25-17.)

215 ILCS 5/1404

    (215 ILCS 5/1404)
    Sec. 1404. Subsidiaries or divisions. A financial institution shall not qualify for registration as a registered firm under Section 499.1 of this Code unless: (1) it establishes a separate subsidiary that acts as the registered firm or (2) it is otherwise permitted by law to sell insurance directly through the financial institution, and it establishes a separate division within the financial institution to conduct the business of the registered firm. The subsidiary or division acting as a registered firm shall maintain records for insurance transactions that are separate and distinct from the records of the financial institution.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1405

    (215 ILCS 5/1405)
    Sec. 1405. Extensions of credit. A financial institution shall not delay or impede the completion of a loan transaction or other transactions involving the extension of credit for the purpose of influencing a customer's selection of any insurance product.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1406

    (215 ILCS 5/1406)
    Sec. 1406. Insurance and financial institution products.
    (a) No financial institution may offer banking products or services, or fix or vary the consideration of the offer, on a condition or requirement that the customer obtain insurance from the financial institution or any affiliate of the financial institution.
    (b) A financial institution that offers banking products or services in conformity with the provisions of Section 106 of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1972) shall be deemed to be in compliance with the provisions of subsection (a) of this Section.
    (c) No financial institution shall require that a customer or prospective customer of the financial institution purchase an insurance product from any particular registered firm or insurance producer as a condition for the lending of money or extension of credit, the establishment or maintenance of a checking, savings, or other deposit account, or the establishment or maintenance of a trust account.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1407

    (215 ILCS 5/1407)
    Sec. 1407. Rebating and discounting.
    (a) No financial institution may offer a rebate on an insurance product in violation of Section 151 of this Code.
    (b) No financial institution may offer a discount on a loan or extension of credit for the purpose of inducing the customer to purchase insurance required in connection with the loan or extension of credit.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1408

    (215 ILCS 5/1408)
    Sec. 1408. Discrimination prohibited. No financial institution may:
    (1) require as a condition of providing any product or service or renewal of any contract for providing a product or service to any customer, that the customer acquire, finance, or negotiate any policy or contract of insurance through a particular insurer, insurance producer, or registered firm;
    (2) in connection with a loan or extension of credit that requires a borrower to obtain insurance, reject an insurance policy solely because the policy has been issued or underwritten by any person who is not associated with the financial institution;
    (3) impose any discriminatory requirement on any insurance producer who is not associated with the financial institution that is not imposed on any insurance producer who is associated with the financial institution; or
    (4) if the financial institution is a registered firm, require any debtor, insurer, or insurance producer to pay a separate charge in connection with the handling of insurance that is required under a contract, unless: (i) the financial institution is the registered firm providing the insurance, (ii) if the financial institution is not the registered firm providing the insurance, the charge would be uniformly applied if the financial institution was the registered firm providing the insurance, or (iii) the charge is otherwise permitted by this Code or other applicable State or federal law.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1409

    (215 ILCS 5/1409)
    Sec. 1409. Disclosure. A financial institution shall clearly and conspicuously disclose in any written advertisement or promotional or informational material regarding an insurance product that the insurance offered, recommended, sponsored, or sold:
    (1) is not a deposit;
    (2) is not insured by the Federal Deposit Insurance Corporation, or in the case of a credit union, by the National Credit Union Share Insurance Fund;
    (3) is not guaranteed by the financial institution or an affiliated insured depository institution; and
    (4) where appropriate, involves investment risk, including potential loss of principal.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1410

    (215 ILCS 5/1410)
    Sec. 1410. Misleading advertising. No financial institution or registered firm may employ any advertisement that would mislead or otherwise cause a reasonable person to believe mistakenly that the State of Illinois or the federal government is responsible for the insurance sales activities of the financial institution or stands behind the financial institution's credit, or that the financial institution, the State of Illinois, or the federal government guarantees any returns on insurance products or is a source of payment of any insurance obligation of or sold by the financial institution.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1411

    (215 ILCS 5/1411)
    Sec. 1411. Commissions and compensation. No financial institution shall pay, directly or indirectly, any commission, service fee, brokerage, or other valuable consideration to any person for services as an insurance producer, temporary insurance producer, or limited insurance representative, or for such services by the person's members, officers, directors or employees, unless the person, and any member, officer, director, or employee performing the service, held a valid license regarding the class of insurance as to which the service was rendered, or unless the person was a properly registered firm at the time the service was performed. No person, other than a person properly licensed or registered in accordance with Article XXXI of this Code at the time the person performs services as an insurance producer, temporary insurance producer, or limited insurance representative, shall accept any commission, service fee, brokerage, or other valuable consideration for such services. This Section shall not prevent payment or receipt of:
    (1) renewal or other deferred commissions to or by any person entitled thereto under this Section;
    (2) fees to or by a financial institution or any other person for services that do not require licensure as an insurance producer, temporary insurance producer, limited insurance representative, or registered firm; or
    (3) consideration paid to a financial institution by a registered firm, insurance producer, insurance company, or any other person pursuant to any lease agreement.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1412

    (215 ILCS 5/1412)
    Sec. 1412. Solicitations to loan applicants.
    (a) A financial institution that requires a customer to obtain insurance in connection with a loan or extension of credit and that offers that insurance either directly or through an affiliate shall clearly disclose to the customer in writing at the time of written application or at closing if no written application is obtained in a form substantially similar to the following:
        "You may obtain insurance required in connection with
    
your loan or extension of credit from any insurance agent, broker, or firm that sells such insurance. Your choice of insurance provider will not affect our credit decision or your credit terms.".
    (b) This Section shall not apply when a financial institution is contacting a customer in the course of direct or mass marketing to a group of persons in a manner that bears no relation to the customer's loan application or credit decision.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1413

    (215 ILCS 5/1413)
    Sec. 1413. Separate physical location and sales force when insurance is solicited or sold in connection with a loan.
    (a) An employee of a financial institution may not solicit or sell insurance at the same desk where a loan transaction is conducted when the insurance is solicited or sold in connection with the same loan.
    (b) A loan officer of a financial institution who is involved in the application, solicitation, or closing of a loan transaction may not solicit or sell insurance in connection with the same loan, but such loan officer may refer the loan customer to another insurance producer who is not involved in the application, solicitation, or closing of the same loan transaction.
    (c) Subsections (a) and (b) of this Section shall not apply to a financial institution, other than a credit union, or a branch location of a financial institution, other than a credit union, that has less than $100,000,000 in deposits.
    (d) Subsections (a) and (b) of this Section shall not apply to a credit union or a branch location of a credit union that has less than $30,000,000 in deposits.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1414

    (215 ILCS 5/1414)
    Sec. 1414. Signage. Signs concerning the availability of insurance products offered by the financial institution or by any registered firm shall be clearly displayed in the same area where applications for loans or other extensions of credit are being taken or closed and shall include the disclosure set forth in subsection (a) of Section 1412.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1415

    (215 ILCS 5/1415)
    Sec. 1415. Confidential customer information.
    (a) A financial institution that is a registered firm may not release a customer's insurance information to any person other than an officer, director, employee, agent, or affiliate of the financial institution without the written consent of the customer. For the purposes of this Section, "insurance information" means information concerning the premiums, terms and conditions of insurance coverage, insurance claims, and the insurance history of a customer contained in the financial institution's records.
    (b) Subsection (a) of this Section shall not apply to:
        (1) names, addresses, and telephone numbers derived
    
in any manner from the financial institution's records, or
        (2) the release of insurance information as otherwise
    
authorized by State or federal law.
    (c) A financial institution shall not require premium information when requiring evidence of insurance in connection with a loan or extension of credit and shall not use such premium information for the purpose of soliciting insurance without the written consent of the customer.
    (d) A financial institution may not use health information obtained from a customer's insurance records for any purpose other than for its activities as a registered firm pursuant to this Code.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1416

    (215 ILCS 5/1416)
    Sec. 1416. Prohibited defenses. A violation of any provision of this Article shall not be used as a defense by any person in any action by a financial institution to recover the amount owing on any loan or extension of credit.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/Art. XLV

 
    (215 ILCS 5/Art. XLV heading)
ARTICLE XLV. PUBLIC ADJUSTERS

(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1501

    (215 ILCS 5/1501)
    Sec. 1501. Short title. This Article may be cited as the Public Adjusters Law.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1505

    (215 ILCS 5/1505)
    Sec. 1505. Purpose and scope. This Article governs the qualifications and procedures for the licensing of public adjusters. It specifies the duties of and restrictions on public adjusters, which include limiting their licensure to assisting insureds in first party claims.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1510

    (215 ILCS 5/1510)
    Sec. 1510. Definitions. In this Article:
    "Adjusting a claim for loss or damage covered by an insurance contract" means negotiating values, damages, or depreciation or applying the loss circumstances to insurance policy provisions.
    "Adjusting insurance claims" means representing an insured with an insurer for compensation and, while representing that insured, either negotiating values, damages, or depreciation or applying the loss circumstances to insurance policy provisions.
    "Business entity" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.
    "Department" means the Department of Insurance.
    "Director" means the Director of Insurance.
    "Fingerprints" means an impression of the lines on the finger taken for the purpose of identification. The impression may be electronic or in ink converted to electronic format.
    "Home state" means the District of Columbia and any state or territory of the United States where the public adjuster's principal place of residence or principal place of business is located. If neither the state in which the public adjuster maintains the principal place of residence nor the state in which the public adjuster maintains the principal place of business has a substantially similar law governing public adjusters, the public adjuster may declare another state in which it becomes licensed and acts as a public adjuster to be the home state.
    "Individual" means a natural person.
    "Person" means an individual or a business entity.
    "Public adjuster" means any person who, for compensation or any other thing of value on behalf of the insured:
        (i) acts, aids, or represents the insured solely in
    
relation to first party claims arising under insurance contracts that insure the real or personal property of the insured, in adjusting a claim for loss or damage covered by an insurance contract;
        (ii) advertises for employment as a public adjuster
    
of insurance claims or solicits business or represents himself or herself to the public as a public adjuster of first party insurance claims for losses or damages arising out of policies of insurance that insure real or personal property; or
        (iii) directly or indirectly solicits business,
    
investigates or adjusts losses, or advises an insured about first party claims for losses or damages arising out of policies of insurance that insure real or personal property for another person engaged in the business of adjusting losses or damages covered by an insurance policy for the insured.
    "Uniform individual application" means the current version of the National Association of Directors (NAIC) Uniform Individual Application for resident and nonresident individuals.
    "Uniform business entity application" means the current version of the National Association of Insurance Commissioners (NAIC) Uniform Business Entity Application for resident and nonresident business entities.
    "Webinar" means an online educational presentation during which a live and participating instructor and participating viewers, whose attendance is periodically verified throughout the presentation, actively engage in discussion and in the submission and answering of questions.
(Source: P.A. 102-135, eff. 7-23-21; 103-216, eff. 1-1-24.)

215 ILCS 5/1515

    (215 ILCS 5/1515)
    Sec. 1515. License required.
    (a) A person shall not act, advertise, solicit, or hold himself out as a public adjuster or to be in the business of adjusting insurance claims in this State, nor attempt to obtain a contract for public adjusting services, unless the person is licensed as a public adjuster in accordance with this Article.
    (b) A person licensed as a public adjuster shall not misrepresent to a claimant that he or she is an adjuster representing an insurer in any capacity, including acting as an employee of the insurer or acting as an independent adjuster unless so appointed by an insurer in writing to act on the insurer's behalf for that specific claim or purpose. A licensed public adjuster is prohibited from charging that specific claimant a fee when appointed by the insurer and the appointment is accepted by the public adjuster.
    (c) A business entity acting as a public adjuster is required to obtain a public adjuster license. Application shall be made using the Uniform Business Entity Application. Before approving the application, the Director shall find that:
        (1) the business entity has paid the required fees
    
to be registered as a business entity in this State; and
        (2) all officers, shareholders, and persons with
    
ownership interests in the business entity are licensed public adjusters responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State.
    (d) Notwithstanding subsections (a) through (c) of this Section, a license as a public adjuster shall not be required of the following:
        (1) an attorney admitted to practice in this State,
    
when acting in his or her professional capacity as an attorney;
        (2) a person who negotiates or settles claims arising
    
under a life or health insurance policy or an annuity contract;
        (3) a person employed only for the purpose of
    
obtaining facts surrounding a loss or furnishing technical assistance to a licensed public adjuster, including photographers, estimators, private investigators, engineers, and handwriting experts;
        (4) a licensed health care provider, or employee of a
    
licensed health care provider, who prepares or files a health claim form on behalf of a patient; or
        (5) a person who settles subrogation claims between
    
insurers.
    (e) All contracts entered into that are in violation of this Section are void and invalid.
(Source: P.A. 103-216, eff. 1-1-24.)

215 ILCS 5/1520

    (215 ILCS 5/1520)
    Sec. 1520. Application for license.
    (a) A person applying for a public adjuster license shall make application to the Director on the appropriate uniform application or other application prescribed by the Director.
    (b) The applicant shall declare under penalty of perjury and under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the applicant's knowledge and belief.
    (c) In order to make a determination of license eligibility, the Director is authorized to require all applicants for licensing, including renewal applicants, to undergo a fingerprint-based criminal history record check for the first year following the effective date of this amendatory Act of the 97th General Assembly. The fingerprints and the fee required to perform the criminal history record checks shall be submitted to the Illinois State Police and the Federal Bureau of Investigation (FBI) to conduct a State and national criminal history record check. The Illinois State Police and the Federal Bureau of Investigation shall furnish to the Department of Insurance all records of convictions, unless or until expunged, pursuant to the fingerprint-based criminal history records check. The Illinois State Police shall charge a fee for conducting such checks, which fee shall be deposited into the State Police Services Fund and shall not exceed the cost of the inquiry. The applicant shall be required to pay all fees associated with conducting the criminal history record check.
    (d) The Director may adopt rules to establish procedures necessary to carry out the requirements of subsection (c) of this Section.
    (e) The Director is authorized to submit electronic fingerprint records and necessary identifying information to the NAIC, its affiliates, or subsidiaries for permanent retention in a centralized repository. The purpose of such a centralized repository is to provide Directors with access to fingerprint records in order to perform criminal history record checks.
    (f) Until such time as the Director can obtain and receive national criminal history records, the applicant shall obtain a copy of his or her fingerprints and complete criminal history record from the FBI Criminal Justice Information Services Division and the Illinois State Police and provide such information to the Department of Insurance.
(Source: P.A. 102-538, eff. 8-20-21.)

215 ILCS 5/1525

    (215 ILCS 5/1525)
    Sec. 1525. Resident license.
    (a) Before issuing a public adjuster license to an applicant under this Section, the Director shall find that the applicant:
        (1) is eligible to designate this State as his or her
    
home state or is a nonresident who is not eligible for a license under Section 1540;
        (2) is sufficiently rehabilitated in cases in which
    
the applicant has committed any act that is a ground for denial, suspension, or revocation of a license as set forth in Section 1555, other than convictions set forth in paragraph (6) of subsection (a) of Section 1555; with respect to applicants with convictions set forth in paragraph (6) of subsection (a) of Section 1555, the Director shall determine in accordance with Section 1550 that the conviction will not impair the ability of the applicant to engage in the position for which a license is sought;
        (3) is trustworthy, reliable, competent, and of good
    
reputation, evidence of which may be determined by the Director;
        (4) is financially responsible to exercise the
    
license and has provided proof of financial responsibility as required in Section 1560 of this Article; and
        (5) maintains an office in the home state of
    
residence with public access by reasonable appointment or regular business hours. This includes a designated office within a home state of residence.
    (b) In addition to satisfying the requirements of subsection (a) of this Section, an individual shall:
        (1) be at least 18 years of age;
        (2) have successfully passed the public adjuster
    
examination;
        (3) designate a licensed individual public adjuster
    
responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State; and
        (4) designate only licensed individual public
    
adjusters to exercise the business entity's license.
    (c) The Director may require any documents reasonably necessary to verify the information contained in the application.
(Source: P.A. 100-286, eff. 1-1-18.)

215 ILCS 5/1530

    (215 ILCS 5/1530)
    Sec. 1530. Examination.
    (a) An individual applying for a public adjuster license under this Article must pass a written examination unless he or she is exempt pursuant to Section 1535 of this Article. The examination shall test the knowledge of the individual concerning the duties and responsibilities of a public adjuster and the insurance laws and regulations of this State. Examinations required by this Section shall be developed and conducted under rules and regulations prescribed by the Director.
    (b) The Director may make arrangements, including contracting with an outside testing service, for administering examinations and collecting the nonrefundable fee. Each individual applying for an examination shall remit a nonrefundable fee as prescribed by the Director. An individual who fails to appear for the examination as scheduled or fails to pass the examination shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination. An individual who fails to pass the examination on his or her first attempt must wait 7 days prior to rescheduling an examination. An individual who fails to pass the examination on his or her second or subsequent attempt must wait 30 days prior to rescheduling an examination.
(Source: P.A. 99-266, eff. 1-1-16.)

215 ILCS 5/1535

    (215 ILCS 5/1535)
    Sec. 1535. Exemptions from examination.
    (a) An individual who applies for a public adjuster license in this State who was previously licensed as a public adjuster in another state based on a public adjuster examination shall not be required to complete any examination. This exemption is only available if (i) the person is currently licensed in that state or if the application is received within 12 months of the cancellation of the applicant's previous license; and (ii) if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state's producer database records or records maintained by the NAIC, its affiliates, or subsidiaries, indicate that the public adjuster is or was licensed in good standing.
    (b) A person licensed as a public adjuster in another state based on a public adjuster examination who moves to this State shall submit an application within 90 days of establishing legal residence to become a resident licensee pursuant to Section 1525 of this Article. No prelicensing examination shall be required of that person to obtain a public adjuster license.
    (c) An individual who applies for a public adjuster license in this State who was previously licensed as a public adjuster in this State shall not be required to complete any prelicensing examination. This exemption is only available if the application is received within 12 months of the cancellation of the applicant's previous license in this State and if, at the time of cancellation, the applicant was in good standing in this State.
(Source: P.A. 96-1332, eff. 1-1-11; 97-207, eff. 7-28-11.)

215 ILCS 5/1540

    (215 ILCS 5/1540)
    Sec. 1540. Nonresident license reciprocity.
    (a) Unless denied licensure pursuant to Section 1555 of this Article, a nonresident person shall receive a nonresident public adjuster license if:
        (1) the person is currently licensed as a resident
    
public adjuster and in good standing in his or her home state;
        (2) the person has submitted the proper request for
    
licensure and has provided proof of financial responsibility as required in Section 1560 of this Article;
        (3) the person has submitted or transmitted to the
    
Director the appropriate completed application for licensure; and
        (4) the person's home state awards nonresident public
    
adjuster licenses to residents of this State on the same basis.
    (b) The Director may verify the public adjuster's licensing status through the producer database maintained by the NAIC, its affiliates, or subsidiaries.
    (c) As a condition to continuation of a public adjuster license issued under this Section, the licensee shall maintain a resident public adjuster license in his or her home state. The nonresident public adjuster license issued under this Section shall terminate and be surrendered immediately to the Director if the home state public adjuster license terminates for any reason, unless the public adjuster has been issued a license as a resident public adjuster in his or her new home state. Notification to the state or states where the nonresident license is issued must be made as soon as possible, yet no later than 30 days of change in new state resident license. The licensee shall include his or her new and old address on the notification. A new state resident license is required for nonresident licenses to remain valid. The new state resident license must have reciprocity with the licensing nonresident state or states for the nonresident license not to terminate.
(Source: P.A. 96-1332, eff. 1-1-11; 97-813, eff. 7-13-12.)

215 ILCS 5/1545

    (215 ILCS 5/1545)
    Sec. 1545. License.
    (a) Unless denied licensure under this Article, persons who have met the requirements of this Article shall be issued a public adjuster license.
    (b) A public adjuster license shall remain in effect unless revoked, terminated, or suspended as long as the requirements for license renewal are met by the due date.
    (c) The licensee shall inform the Director by any means acceptable to the Director of a change of address, change of legal name, or change of information submitted on the application within 30 days of the change.
    (d) A licensed public adjuster shall be subject to Article XXVI of this Code.
    (e) A public adjuster who allows his or her license to lapse may, within 12 months from the due date of the renewal, be issued a new public adjuster license without necessity of passing a written examination. However, a penalty in the amount of double the unpaid renewal fee shall be required for the issue of the new public adjuster license.
    (f) A licensed public adjuster that is unable to comply with license renewal procedures due to military service or a long-term medical disability may request a waiver of the procedures in subsection (e) of this Section. The public adjuster may also request a waiver of any examination requirement, fine, or other sanction imposed for failure to comply with renewal procedures.
    (g) The license shall contain the licensee's name, city and state of business address, personal identification number, the date of issuance, the expiration date, and any other information the Director deems necessary.
    (h) In order to assist in the performance of the Director's duties, the Director may contract with non-governmental entities, including the NAIC or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions, including the collection of fees and data, related to licensing that the Director may deem appropriate.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1550

    (215 ILCS 5/1550)
    Sec. 1550. Applicant convictions.
    (a) The Director and the Department shall not require applicants to report the following information and shall not collect or consider the following criminal history records in connection with a public adjuster license application:
        (1) Juvenile adjudications of delinquent minors as
    
defined in Section 5-105 of the Juvenile Court Act of 1987, subject to the restrictions set forth in Section 5-130 of that Act.
        (2) Law enforcement records, court records, and
    
conviction records of an individual who was 17 years old at the time of the offense and before January 1, 2014, unless the nature of the offense required the individual to be tried as an adult.
        (3) Records of arrest not followed by a formal charge
    
or conviction.
        (4) Records of arrest where charges were dismissed
    
unless related to the duties and responsibilities of a public adjuster. However, applicants shall not be asked to report any arrests, and any arrest not followed by a conviction shall not be the basis of a denial and may be used only to assess an applicant's rehabilitation.
        (5) Convictions overturned by a higher court.
        (6) Convictions or arrests that have been sealed or
    
expunged.
    (b) The Director, upon a finding that an applicant for a license under this Act was previously convicted of any felony or a misdemeanor involving dishonesty or fraud, shall consider any mitigating factors and evidence of rehabilitation contained in the applicant's record, including any of the following factors and evidence, to determine if a license may be denied because the prior conviction will impair the ability of the applicant to engage in the position for which a license is sought:
        (1) the bearing, if any, of the offense for which
    
the applicant was previously convicted on the duties, functions, and responsibilities of the position for which a license is sought;
        (2) whether the conviction suggests a future
    
propensity to endanger the safety and property of others while performing the duties and responsibilities for which a license is sought;
        (3) if the applicant was previously licensed or
    
employed in this State or other states or jurisdictions, then the lack of prior misconduct arising from or related to the licensed position or position of employment;
        (4) whether 5 years since a felony conviction or 3
    
years since release from confinement for the conviction, whichever is later, have passed without a subsequent conviction;
        (5) successful completion of sentence and, for
    
applicants serving a term of parole or probation, a progress report provided by the applicant's probation or parole officer that documents the applicant's compliance with conditions of supervision;
        (6) evidence of the applicant's present fitness and
    
professional character;
        (7) evidence of rehabilitation or rehabilitative
    
effort during or after incarceration or during or after a term of supervision, including, but not limited to, a certificate of good conduct under Section 5-5.5-25 of the Unified Code of Corrections or certificate of relief from disabilities under Section 5-5.5-10 of the Unified Code of Corrections; and
        (8) any other mitigating factors that contribute to
    
the person's potential and current ability to perform the duties and responsibilities of a public adjuster.
    (c) If a nonresident licensee meets the standards set forth in items (1) through (4) of subsection (a) of Section 1540 and has received consent pursuant to 18 U.S.C. 1033(e)(2) from his or her home state, the Director shall grant the nonresident licensee a license.
    (d) If the Director refuses to issue a license to an applicant based on a conviction or convictions, in whole or in part, then the Director shall notify the applicant of the denial in writing with the following included in the notice of denial:
        (1) a statement about the decision to refuse to issue
    
a license;
        (2) a list of convictions that the Director
    
determined will impair the applicant's ability to engage in the position for which a license is sought;
        (3) a list of the convictions that were the sole or
    
partial basis for the refusal to issue a license; and
        (4) a summary of the appeal process or the earliest
    
the applicant may reapply for a license, whichever is applicable.
(Source: P.A. 103-216, eff. 1-1-24.)

215 ILCS 5/1555

    (215 ILCS 5/1555)
    Sec. 1555. License denial, nonrenewal, or revocation.
    (a) The Director may place on probation, suspend, revoke, deny, or refuse to issue or renew a public adjuster's license or may levy a civil penalty or any combination of actions, for any one or more of the following causes:
        (1) providing incorrect, misleading, incomplete, or
    
materially untrue information in the license application;
        (2) violating any insurance laws, or violating any
    
regulation, subpoena, or order of the Director or of another state's Director;
        (3) obtaining or attempting to obtain a license
    
through misrepresentation or fraud;
        (4) improperly withholding, misappropriating, or
    
converting any monies or properties received in the course of doing insurance business;
        (5) intentionally misrepresenting the terms of an
    
actual or proposed insurance contract or application for insurance;
        (6) having been convicted of any felony or a
    
misdemeanor involving dishonesty or fraud, unless the individual demonstrates to the Director sufficient rehabilitation to warrant the public trust; consideration of such conviction of an applicant shall be in accordance with Section 1550;
        (7) having admitted or been found to have committed
    
any insurance unfair trade practice or insurance fraud;
        (8) using fraudulent, coercive, or dishonest
    
practices; or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this State or elsewhere;
        (9) having an insurance license or public adjuster
    
license or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory;
        (10) forging another's name to an application for
    
insurance or to any document related to an insurance transaction;
        (11) cheating, including improperly using notes or
    
any other reference material, to complete an examination for an insurance license or public adjuster license;
        (12) knowingly accepting insurance business from or
    
transacting business with an individual who is not licensed but who is required to be licensed by the Director;
        (13) failing to comply with an administrative or
    
court order imposing a child support obligation;
        (14) failing to pay State income tax or comply with
    
any administrative or court order directing payment of State income tax;
        (15) failing to comply with or having violated any of
    
the standards set forth in Section 1590 of this Law;
        (16) failing to maintain the records required by
    
Section 1585 of this Law.
    (b) If the action by the Director is to nonrenew, suspend, or revoke a license or to deny an application for a license, the Director shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the suspension, revocation, denial, or nonrenewal of the applicant's or licensee's license. The applicant or licensee may make written demand upon the Director within 30 days after the date of mailing for a hearing before the Director to determine the reasonableness of the Director's action. The hearing must be held within not fewer than 20 days nor more than 30 days after the mailing of the notice of hearing and shall be held pursuant to 50 Ill. Adm. Code 2402.
    (c) The license of a business entity may be suspended, revoked, or refused if the Director finds, after hearing, that an individual licensee's violation was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the business entity and the violation was neither reported to the Director, nor corrective action taken.
    (d) In addition to or in lieu of any applicable denial, suspension or revocation of a license, a person may, after hearing, be subject to a civil penalty. In addition to or instead of any applicable denial, suspension, or revocation of a license, a person may, after hearing, be subject to a civil penalty of up to $10,000 for each cause for denial, suspension, or revocation, however, the civil penalty may total no more than $100,000.
    (e) The Director shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by this Article against any person who is under investigation for or charged with a violation of this Article even if the person's license or registration has been surrendered or has lapsed by operation of law.
    (f) Any individual whose public adjuster's license is revoked or whose application is denied pursuant to this Section shall be ineligible to apply for a public adjuster's license for 5 years. A suspension pursuant to this Section may be for any period of time up to 5 years.
(Source: P.A. 103-216, eff. 1-1-24.)

215 ILCS 5/1560

    (215 ILCS 5/1560)
    Sec. 1560. Bond or letter of credit.
    (a) Prior to the issuance of a license as a public adjuster and for the duration of the license, the applicant shall secure evidence of financial responsibility in a format prescribed by the Director through a surety bond or irrevocable letter of credit, subject to all of the following requirements:
        (1) A surety bond executed and issued by an insurer
    
authorized to issue surety bonds in this State, which bond:
            (A) shall be in the minimum amount of $50,000;
            (B) shall be in favor of this State and shall
        
specifically authorize recovery by the Director on behalf of any person in this State who sustained damages as the result of erroneous acts, failure to act, conviction of fraud, or conviction of unfair practices in his or her capacity as a public adjuster; and
            (C) shall not be terminated unless at least 30
        
days' prior written notice will have been filed with the Director and given to the licensee; and
        (2) An irrevocable letter of credit issued by a
    
qualified financial institution, which letter of credit:
            (A) shall be in the minimum amount of $50,000;
            (B) shall be to an account to the Director and
        
subject to lawful levy of execution on behalf of any person to whom the public adjuster has been found to be legally liable as the result of erroneous acts, failure to act, fraudulent acts, or unfair practices in his or her capacity as a public adjuster; and
            (C) shall not be terminated unless at least 30
        
days' prior written notice will have been filed with the and given to the licensee.
    (b) The issuer of the evidence of financial responsibility shall notify the Director upon termination of the bond or letter of credit, unless otherwise directed by the Director.
    (c) The Director may ask for the evidence of financial responsibility at any time he or she deems relevant.
    (d) The authority to act as a public adjuster shall automatically terminate if the evidence of financial responsibility terminates or becomes impaired.
(Source: P.A. 103-216, eff. 1-1-24.)

215 ILCS 5/1563

    (215 ILCS 5/1563)
    Sec. 1563. Fees. The fees required by this Article are as follows:
        (1) Public adjuster license fee of $250, payable once
    
every 2 years.
        (2) Business entity license fee of $250, payable once
    
every 2 years.
        (3) Application fee of $50 for processing each
    
request to take the written examination for a public adjuster license.
(Source: P.A. 100-863, eff. 8-14-18.)

215 ILCS 5/1565

    (215 ILCS 5/1565)
    Sec. 1565. Continuing education.
    (a) An individual who holds a public adjuster license and who is not exempt under subsection (b) of this Section shall satisfactorily complete a minimum of 24 hours of continuing education courses, including 3 hours of classroom or webinar ethics instruction, reported on a biennial basis in conjunction with the license renewal cycle.
    The Director may not approve a course of study unless the course provides for classroom, seminar, or self-study instruction methods. A course given in a combination instruction method of classroom or seminar and self-study shall be deemed to be a self-study course unless the classroom or seminar certified hours meets or exceeds two-thirds of the total hours certified for the course. The self-study material used in the combination course must be directly related to and complement the classroom portion of the course in order to be considered for credit. An instruction method other than classroom or seminar shall be considered as self-study methodology. Self-study credit hours require the successful completion of an examination covering the self-study material. The examination may not be self-evaluated. However, if the self-study material is completed through the use of an approved computerized interactive format whereby the computer validates the successful completion of the self-study material, no additional examination is required. The self-study credit hours contained in a certified course shall be considered classroom hours when at least two-thirds of the hours are given as classroom or seminar instruction.
    The public adjuster must complete the course in advance of the renewal date to allow the education provider time to report the credit to the Department.
    (b) This Section shall not apply to:
        (1) licensees not licensed for one full year prior to
    
the end of the applicable continuing education biennium; or
        (2) licensees holding nonresident public adjuster
    
licenses who have met the continuing education requirements of their home state and whose home state gives credit to residents of this State on the same basis.
    (c) Only continuing education courses approved by the Director shall be used to satisfy the continuing education requirement of subsection (a) of this Section.
(Source: P.A. 102-135, eff. 7-23-21.)

215 ILCS 5/1570

    (215 ILCS 5/1570)
    Sec. 1570. Public adjuster fees.
    (a) A public adjuster shall not pay a commission, service fee, or other valuable consideration to a person for investigating or settling claims in this State if that person is required to be licensed under this Article and is not so licensed.
    (b) A person shall not accept a commission, service fee, or other valuable consideration for investigating or settling claims in this State if that person is required to be licensed under this Article and is not so licensed.
    (c) A public adjuster may pay or assign commission, service fees, or other valuable consideration to persons who do not investigate or settle claims in this State, unless the payment would violate State law.
    (d) If the loss giving rise to the claim for which the public adjuster was retained arises from damage to property that is anything but a personal residence, a public adjuster may not charge, agree to, or accept any compensation, payment, commission, fee, or other valuable consideration in excess of 10% of the amount of the insurance settlement claim paid by the insurer on any claim resulting from a catastrophic event, unless approved in writing by the Director. Application for exception to the 10% limit must be made in writing. The request must contain specific reasons as to why the consideration should be in excess of 10% and proof that the policyholder would accept the consideration. The Director must act on any request within 5 business days after receipt of the request.
    For the purpose of this subsection (d), "catastrophic event" means an occurrence of widespread or severe damage or loss of property producing an overwhelming demand on State and local response resources and mechanisms and a severe long-term effect on general economic activity, and that severely affects State, local, and private sector capabilities to begin to sustain response activities resulting from any catastrophic cause, including, but not limited to, fire, including arson (provided the fire was not caused by the willful action of an owner or resident of the property), flood, earthquake, wind, storm, explosion, or extended periods of severe inclement weather as determined by declaration of a State of disaster by the Governor. This declaration may be made on a county-by-county basis and shall be in effect for 90 days, but may be renewed for 30-day intervals thereafter.
    (e) If the loss giving rise to the claim for which the public adjuster was retained arises from damage to a personal residence, a public adjuster may not charge, agree to, or accept any compensation, payment, commission, fee, or other valuable consideration in excess of 10% of the amount of the insurance settlement claim paid by the insurer on any claim.
(Source: P.A. 103-216, eff. 1-1-24.)

215 ILCS 5/1575

    (215 ILCS 5/1575)
    Sec. 1575. Contract between public adjuster and insured.
    (a) Public adjusters shall ensure that all contracts for their services are in writing and contain the following terms:
        (1) legible full name of the adjuster signing the
    
contract, as specified in Department records;
        (2) permanent home state business address, email
    
address, and phone number;
        (3) license number;
        (4) title of "Public Adjuster Contract";
        (5) the insured's full name, street address,
    
insurance company name, and policy number, if known or upon notification;
        (6) a description of the loss and its location;
        (7) description of services to be provided to the
    
insured;
        (8) signatures of the public adjuster and the insured;
        (9) date and time the contract was signed by the
    
public adjuster and date and time the contract was signed by the insured;
        (10) attestation language stating that the public
    
adjuster is fully bonded pursuant to State law; and
        (11) full salary, fee, commission, compensation, or
    
other considerations the public adjuster is to receive for services, including any applicable cap under Section 1570.
    (b) The contract may specify that the public adjuster shall be named as a co-payee on an insurer's payment of a claim.
        (1) If the compensation is based on a share of the
    
insurance settlement, the exact percentage shall be specified.
        (2) Initial expenses to be reimbursed to the public
    
adjuster from the proceeds of the claim payment shall be specified by type, with dollar estimates set forth in the contract and with any additional expenses first approved by the insured.
        (3) Compensation provisions in a public adjuster
    
contract shall not be redacted in any copy of the contract provided to the Director.
    (c) If the insurer, not later than 5 business days after the date on which the loss is reported to the insurer, either pays or commits in writing to pay to the insured the policy limit of the insurance policy, the public adjuster shall:
        (1) not receive a commission consisting of a
    
percentage of the total amount paid by an insurer to resolve a claim;
        (2) inform the insured that loss recovery amount
    
might not be increased by insurer; and
        (3) be entitled only to reasonable compensation from
    
the insured for services provided by the public adjuster on behalf of the insured, based on the time spent on a claim and expenses incurred by the public adjuster, until the claim is paid or the insured receives a written commitment to pay from the insurer.
    (d) A public adjuster shall provide the insured a written disclosure concerning any direct or indirect financial interest that the public adjuster has with any other party who is involved in any aspect of the claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured, including, but not limited to, any ownership of or any compensation expected to be received from, any construction firm, salvage firm, building appraisal firm, board-up company, or any other firm that provides estimates for work, or that performs any work, in conjunction with damages caused by the insured loss on which the public adjuster is engaged. The word "firm" shall include any corporation, partnership, association, joint-stock company, or person.
    (e) A public adjuster contract may not contain any contract term that:
        (1) allows the public adjuster's percentage fee to be
    
collected when money is due from an insurance company, but not paid, or that allows a public adjuster to collect the entire fee from the first check issued by an insurance company, rather than as a percentage of each check issued by an insurance company;
        (2) requires the insured to authorize an insurance
    
company to issue a check only in the name of the public adjuster;
        (3) precludes a public adjuster or an insured from
    
pursuing civil remedies;
        (4) includes any hold harmless agreement that
    
provides indemnification to the public adjuster by the insured for liability resulting from the public adjuster's negligence; or
        (5) provides power of attorney by which the public
    
adjuster can act in the place and instead of the insured.
    (f) The following provisions apply to a contract between a public adjuster and an insured:
        (1) Prior to the signing of the contract, the public
    
adjuster shall provide the insured with a separate signed and dated disclosure document regarding the claim process that states:
    "Property insurance policies obligate the insured to
    
present a claim to his or her insurance company for consideration. There are 3 types of adjusters that could be involved in that process. The definitions of the 3 types are as follows:
            (A) "Company adjuster" means the insurance
        
adjusters who are employees of an insurance company. They represent the interest of the insurance company and are paid by the insurance company. They will not charge you a fee.
            (B) "Independent adjuster" means the insurance
        
adjusters who are hired on a contract basis by an insurance company to represent the insurance company's interest in the settlement of the claim. They are paid by your insurance company. They will not charge you a fee.
            (C) "Public adjuster" means the insurance
        
adjusters who do not work for any insurance company. They represent the insured to assist in the preparation, presentation and settlement of the claim. The insured hires them by signing a contract agreeing to pay them a fee or commission based on a percentage of the settlement, or other method of compensation.".
        (2) The insured is not required to hire a public
    
adjuster to help the insured meet his or her obligations under the policy, but has the right to do so.
        (3) The public adjuster is not a representative or
    
employee of the insurer or the Department of Insurance.
        (4) The salary, fee, commission, or other
    
consideration is the obligation of the insured, not the insurer, except when rights have been assigned to the public adjuster by the insured.
    (g) The contracts shall be executed in duplicate to provide an original contract to the public adjuster, and an original contract to the insured. The public adjuster's original contract shall be available at all times for inspection without notice by the Director.
    (h) The public adjuster shall provide the insurer or its authorized representative for receiving notice of loss or damage with an exact copy of the contract with the insured by email no later than 5 business days after execution of the contract, authorizing the public adjuster to represent the insured's interest.
    (i) The public adjuster shall give the insured written notice of the insured's rights as a consumer under the law of this State.
    (j) A public adjuster shall not provide services, other than emergency services, until a written contract with the insured has been executed, on a form filed with and approved by the Director, and an exact copy of the contract has been provided to the insurer in accordance with subsection (h). At the option of the insured, any such contract shall be voidable for 5 business days after the contract is received by the insurer. The insured may void the contract by notifying the public adjuster in writing by (i) registered or certified mail, return receipt requested, to the address shown on the contract, (ii) personally serving the notice on the public adjuster, or (iii) sending an email to the email address shown on the contract.
    (k) If the insured exercises the right to rescind the contract, anything of value given by the insured under the contract will be returned to the insured within 15 business days following the receipt by the public adjuster of the cancellation notice.
    (l) All contracts entered into that are in violation of this Section are void and invalid.
(Source: P.A. 103-216, eff. 1-1-24.)

215 ILCS 5/1580

    (215 ILCS 5/1580)
    Sec. 1580. Escrow or trust accounts. A public adjuster who receives, accepts, or holds any funds on behalf of an insured towards the settlement of a claim for loss or damage shall deposit the funds in a non-interest bearing escrow or trust account in a financial institution that is insured by an agency of the federal government in the public adjuster's home state or where the loss occurred.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1585

    (215 ILCS 5/1585)
    Sec. 1585. Record retention.
    (a) A public adjuster shall maintain a complete record of each transaction as a public adjuster. The records required by this Section shall include the following:
        (1) name of the insured;
        (2) date, location and amount of the loss;
        (3) a copy of the contract between the public
    
adjuster and insured and a copy of the separate disclosure documents;
        (4) name of the insurer, amount, expiration date and
    
number of each policy carried with respect to the loss;
        (5) itemized statement of the insured's recoveries;
        (6) itemized statement of all compensation received
    
by the public adjuster, from any source whatsoever, in connection with the loss;
        (7) a register of all monies received, deposited,
    
disbursed, or withdrawn in connection with a transaction with an insured, including fees transfers and disbursements from a trust account and all transactions concerning all interest bearing accounts;
        (8) name of public adjuster who executed the contract;
        (9) name of the attorney representing the insured, if
    
applicable, and the name of the claims representatives of the insurance company; and
        (10) evidence of financial responsibility in a format
    
prescribed by the Director.
    (b) Records shall be maintained for at least 7 years after the termination of the transaction with an insured and shall be open to examination by the Director at all times.
    (c) Records submitted to the Director in accordance with this Section that contain information identified in writing as proprietary by the public adjuster shall be treated as confidential by the Director and shall not be subject to the Freedom of Information Act.
(Source: P.A. 103-216, eff. 1-1-24.)

215 ILCS 5/1590

    (215 ILCS 5/1590)
    Sec. 1590. Standards of conduct of public adjuster.
    (a) A public adjuster is obligated, under his or her license, to serve with objectivity and complete loyalty for the interests of his client alone, and to render to the insured such information, counsel, and service, as within the knowledge, understanding, and opinion in good faith of the licensee, as will best serve the insured's insurance claim needs and interest.
    (b) A public adjuster may not propose or attempt to propose to any person that the public adjuster represent that person while a loss-producing occurrence is continuing, nor while the fire department or its representatives are engaged at the damaged premises, nor between the hours of 7:00 p.m. and 8:00 a.m.
    (c) A public adjuster shall not permit an unlicensed employee or representative of the public adjuster to conduct business for which a license is required under this Article.
    (d) A public adjuster shall not have a direct or indirect financial interest in any aspect of the claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured, unless full written disclosure has been made to the insured as set forth in subsection (d) of Section 1575.
    (e) A public adjuster shall not acquire any interest in the salvage of property subject to the contract with the insured unless the public adjuster obtains written permission from the insured after settlement of the claim with the insurer as set forth in subsection (d) of Section 1575 of this Article.
    (f) The public adjuster shall abstain from referring or directing the insured to get needed repairs or services in connection with a loss from any person, unless disclosed to the insured:
        (1) with whom the public adjuster has a direct or
    
indirect financial interest; or
        (2) from whom the public adjuster may receive direct
    
or indirect compensation for the referral.
    (g) The public adjuster shall disclose to an insured if he or she has any interest or will be compensated by any construction firm, salvage firm, building appraisal firm, board-up company, or any other firm that performs any work in conjunction with damages caused by the insured loss. The word "firm" shall include any corporation, partnership, association, joint-stock company or individual as set forth in Section 1575 of this Article.
    (h) Any compensation or anything of value in connection with an insured's specific loss that will be received by a public adjuster shall be disclosed by the public adjuster to the insured in writing including the source and amount of any such compensation.
    (i) In all cases where the loss giving rise to the claim for which the public adjuster was retained arise from damage to a personal residence, the insurance proceeds shall be delivered to the named insured or his or her designee. Where proceeds paid by an insurance company are paid jointly to the insured and the public adjuster, the insured shall release such portion of the proceeds that are due the public adjuster within 30 calendar days after the insured's receipt of the insurance company's check, money order, draft, or release of funds. If the proceeds are not so released to the public adjuster within 30 calendar days, the insured shall provide the public adjuster with a written explanation of the reason for the delay.
    (j) Public adjusters shall adhere to the following general ethical requirements:
        (1) a public adjuster shall not undertake the
    
adjustment of any claim if the public adjuster is not competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the public adjuster's current expertise;
        (2) a public adjuster shall not knowingly make any
    
oral or written material misrepresentations or statements which are false or maliciously critical and intended to injure any person engaged in the business of insurance to any insured client or potential insured client;
        (3) no public adjuster, while so licensed by the
    
Department, may represent or act as a company adjuster or independent adjuster on the same claim;
        (4) the contract shall not be construed to prevent an
    
insured from pursuing any civil remedy after the 5-business day revocation or cancellation period;
        (5) a public adjuster shall not enter into a contract
    
or accept a power of attorney that vests in the public adjuster the effective authority to choose the persons who shall perform repair work;
        (6) a public adjuster shall ensure that all contracts
    
for the public adjuster's services are in writing and set forth all terms and conditions of the engagement; and
        (7) a public adjuster shall not advance money or any
    
valuable consideration, except emergency services to an insured pending adjustment of a claim.
    (k) A public adjuster may not agree to any loss settlement without the insured's knowledge and consent and shall, upon the insured's request, provide the insured with a document setting forth the scope, amount, and value of the damages prior to request by the insured for authority to settle the loss.
    (l) A public adjuster shall not provide legal advice or representation to the insured or engage in the unauthorized practice of law.
    (m) A public adjuster shall not represent that he or she is a representative of an insurance company, a fire department, or the State of Illinois, that he or she is a fire investigator, that his or her services are required for the insured to submit a claim to the insured's insurance company, or that he or she may provide legal advice or representation to the insured. A public adjuster may represent that he or she has been licensed by the State of Illinois.
(Source: P.A. 103-216, eff. 1-1-24.)

215 ILCS 5/1595

    (215 ILCS 5/1595)
    Sec. 1595. Reporting of actions.
    (a) The public adjuster shall report to the Director any administrative action taken against the public adjuster in another jurisdiction or by another governmental agency in this State within 30 days of the final disposition of the matter. This report shall include a copy of the order, consent to order, or other relevant legal documents.
    (b) Within 30 days of the initial pretrial hearing date, the public adjuster shall report to the Director any criminal prosecution of the public adjuster taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1600

    (215 ILCS 5/1600)
    Sec. 1600. Examinations.
    (a) The Director shall have the power to examine any applicant or any person licensed or registered pursuant to this Article.
    (b) Every person being examined and its officers, directors, and members must provide to the Director convenient and free access, at all reasonable hours, to all books, records, documents, and other papers relating to its public adjusting affairs. The officers, directors, members, and employees must facilitate and aid in such examinations so far as it is in their power to do so.
    (c) Examiners may be designated by the Director. Such examiners shall make their reports to the Director pursuant to this Section. Any report alleging substantive violations shall be in writing and shall be based upon the facts ascertained from the books, records, documents, papers, and other evidence obtained by the examiners or ascertained from the testimony of the officers, directors, members, or other individuals examined under oath or ascertained by notarized affidavits received by the examiners. The reports shall be verified by the examiners.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1605

    (215 ILCS 5/1605)
    Sec. 1605. Injunctive relief. Any person who acts as or holds himself out to be a public adjuster without holding a valid and current license to do so is hereby declared to be inimical to the public welfare and to constitute a public nuisance. The Director may report such practice to the Attorney General of the State of Illinois whose duty it is to apply forthwith by complaint on relation of the Director in the name of the people of the State of Illinois, as plaintiff, for injunctive relief in the circuit court of the county where such practice occurred to enjoin the person from engaging in such practice; and upon the filing of a verified petition in such court, the court, if satisfied by affidavit or otherwise that the person has been engaged in such practice without a valid and current license to do so, may enter a temporary restraining order without notice or bond enjoining the defendant from such further practice. A copy of the verified complaint shall be served upon the defendant and the proceedings shall thereafter be conducted as in other civil cases. If it is established that the defendant has been or is engaged in such unlawful practice, then the court may enter an order or judgment perpetually enjoining the defendant from such further practice. In all proceedings hereunder, the court, in its discretion, may apportion the costs among the parties interested in the action, including the costs of filing the complaint, service of process, witness fees and expenses, court reporter charges, and reasonable attorney fees. In case of violation of any injunctive order entered under the provisions of this Section, the court may try and punish the offender for contempt of court. Such injunction proceedings shall be in addition to, and not in lieu of, all penalties and other remedies.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1610

    (215 ILCS 5/1610)
    Sec. 1610. Additional penalties. In addition to any other penalty set forth in this Article, any person violating Section 1605 of this Code shall be guilty of a Class A misdemeanor and any person misappropriating or converting any monies collected as a public adjuster, whether licensed or not, shall be guilty of a Class 4 felony.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1615

    (215 ILCS 5/1615)
    Sec. 1615. Rules. The Director shall promulgate reasonable rules as are necessary or proper to carry out the purposes of this Article.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/Art. XLVI

 
    (215 ILCS 5/Art. XLVI heading)
ARTICLE XLVI. TRAVEL INSURANCE
(Source: P.A. 102-212, eff. 10-28-21.)

215 ILCS 5/1620

    (215 ILCS 5/1620)
    Sec. 1620. Short title. This Article may be cited as the Travel Insurance Act.
(Source: P.A. 102-212, eff. 10-28-21.)

215 ILCS 5/1625

    (215 ILCS 5/1625)
    Sec. 1625. Scope and purposes.
    (a) The purpose of this Article is to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in this State.
    (b) This Article applies to travel insurance that covers any resident of this State, and is sold, solicited, negotiated, or offered in this State, and policies and certificates that are delivered or issued for delivery in this State. This Article does not apply to cancellation fee waivers or travel assistance services except as expressly provided in this Article.
    (c) All other applicable provisions of this State's insurance laws shall continue to apply to travel insurance, except that the specific provisions of this Article shall supersede any general provisions of law that would otherwise be applicable to travel insurance.
(Source: P.A. 102-212, eff. 10-28-21.)

215 ILCS 5/1630

    (215 ILCS 5/1630)
    Sec. 1630. Definitions. As used in this Article:
    "Aggregator site" means a website that provides access to information regarding insurance products from more than one insurer, including product and insurer information, for use in comparison shopping.
    "Blanket travel insurance" means a policy of travel insurance issued to any eligible group providing coverage for specific classes of persons defined in the policy with coverage provided to all members of the eligible group without a separate charge to individual members of the eligible group.
    "Cancellation fee waiver" means a contractual agreement between a supplier of travel services and its customer to waive some or all of the nonrefundable cancellation fee provisions of the supplier's underlying travel contract with or without regard to the reason for the cancellation or form of reimbursement. A "cancellation fee waiver" is not insurance.
    "Eligible group", solely for the purposes of travel insurance, means 2 or more persons who are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, including, but not limited to, any of the following:
        (1) any entity engaged in the business of
    
providing travel or travel services, including, but not limited to: tour operators, lodging providers, vacation property owners, hotels and resorts, travel clubs, travel agencies, property managers, cultural exchange programs, and common carriers or the operator, owner, or lessor of a means of transportation of passengers, including, but not limited to, airlines, cruise lines, railroads, steamship companies, and public bus carriers, wherein with regard to any particular travel or type of travel or travelers, all members or customers of the group must have a common exposure to risk attendant to such travel;
        (2) any college, school, or other institution of
    
learning covering students, teachers, employees, or volunteers;
        (3) any employer covering any group of employees,
    
volunteers, contractors, board of directors, dependents, or guests;
        (4) any sports team, camp, or sponsor of any
    
sports team or camp covering participants, members, campers, employees, officials, supervisors, or volunteers;
        (5) any religious, charitable, recreational,
    
educational, or civic organization, or branch of an organization covering any group of members, participants, or volunteers;
        (6) any financial institution or financial
    
institution vendor, or parent holding company, trustee, or agent of or designated by one or more financial institutions or financial institution vendors, including account holders, credit card holders, debtors, guarantors, or purchasers;
        (7) any incorporated or unincorporated
    
association, including labor unions, having a common interest, constitution and bylaws, and organized and maintained in good faith for purposes other than obtaining insurance for members or participants of such association covering its members;
        (8) any trust or the trustees of a fund
    
established, created, or maintained for the benefit of and covering members, employees or customers, subject to the Director's permitting the use of a trust and the State's premium tax provisions, of one or more associations meeting the requirements of paragraph (7) of this definition;
        (9) any entertainment production company covering
    
any group of participants, volunteers, audience members, contestants, or workers;
        (10) any volunteer fire department, ambulance,
    
rescue, police, court, or any first aid, civil defense, or other such volunteer group;
        (11) preschools, day care institutions for
    
children or adults, and senior citizen clubs;
        (12) any automobile or truck rental or leasing
    
company covering a group of individuals who may become renters, lessees, or passengers defined by their travel status on the rented or leased vehicles. The common carrier, the operator, owner or lessor of a means of transportation, or the automobile or truck rental or leasing company, is the policyholder under a policy to which this Section applies; or
        (13) any other group where the Director has
    
determined that the members are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, and that issuance of the policy would not be contrary to the public interest.
    "Fulfillment materials" means documentation sent to the purchaser of a travel protection plan confirming the purchase and providing the travel protection plan's coverage and assistance details.
    "Group travel insurance" means travel insurance issued to any eligible group.
    "Limited lines travel insurance producer" means one of the following:
        (1) a licensed managing general agent or
    
third-party administrator;
        (2) a licensed insurance producer, including a
    
limited lines producer; or
        (3) a travel administrator.
    "Offering and disseminating" means the following:
        (1) Providing information to a prospective or
    
current policyholder on behalf of a limited lines travel insurance entity, including brochures, buyer guides, descriptions of coverage, and price.
        (2) Referring specific questions regarding coverage
    
features and benefits from a prospective or current policyholder to a limited lines travel insurance entity.
        (3) Disseminating and processing applications for
    
coverage, coverage selection forms, or other similar forms in response to a request from a prospective or current policyholder.
        (4) Collecting premiums from a prospective or
    
current policyholder on behalf of a limited lines travel insurance entity.
        (5) Receiving and recording information from a
    
policyholder to share with a limited lines travel insurance entity.
    "Primary policyholder" means an individual person who elects and purchases individual travel insurance.
    "Travel administrator" means a person who directly or indirectly underwrites, collects charges, collateral, or premiums from, or adjusts or settles claims on residents of this State in connection with travel insurance, except that a person shall not be considered a travel administrator if that person's only actions that would otherwise cause the person to be considered a travel administrator are among the following:
        (1) a person working for a travel administrator to
    
the extent that the person's activities are subject to the supervision and control of the travel administrator;
        (2) an insurance producer selling insurance or
    
engaged in administrative and claims-related activities within the scope of the producer's license;
        (3) a travel retailer offering and disseminating
    
travel insurance and registered under the license of a limited lines travel insurance producer in accordance with Section 1635;
        (4) an individual adjusting or settling claims in
    
the normal course of that individual's practice or employment as an attorney-at-law and who does not collect charges or premiums in connection with insurance coverage; or
        (5) a business entity that is affiliated with a
    
licensed insurer while acting as a travel administrator for the direct and assumed insurance business of an affiliated insurer.
    "Travel assistance services" means noninsurance services for which the consumer is not indemnified based on a fortuitous event, and where providing the service does not result in transfer or shifting of risk that would constitute the business of insurance. "Travel assistance services" include, but are not limited to: security advisories; destination information; vaccination and immunization information services; travel reservation services; entertainment; activity and event planning; translation assistance; emergency messaging; international legal and medical referrals; medical case monitoring; coordination of transportation arrangements; emergency cash transfer assistance; medical prescription replacement assistance; passport and travel document replacement assistance; lost luggage assistance; concierge services; and any other service that is furnished in connection with planned travel. "Travel assistance services" are not insurance and are not related to insurance.
    "Travel insurance" means insurance coverage for personal risks incident to planned travel, including, but not limited to:
        (1) the interruption or cancellation of a trip or
    
event;
        (2) the loss of baggage or personal effects;
        (3) damages to accommodations or rental vehicles;
        (4) sickness, accident, disability, or death
    
occurring during travel;
        (5) emergency evacuation;
        (6) repatriation of remains; or
        (7) any other contractual obligations to indemnify
    
or pay a specified amount to the traveler upon determinable contingencies related to travel as approved by the Director.
    "Travel insurance" does not include major medical plans that provide comprehensive medical protection for travelers with trips lasting 6 months or longer, including those working overseas as expatriates or as military personnel on deployment.
    "Travel insurance business entity" means a licensed insurance producer designated by an insurer as set forth in subsection (h) of Section 1635.
    "Travel protection plans" means plans that provide one or more of the following: travel insurance, travel assistance services, and cancellation fee waivers.
    "Travel retailer" means a business organization that makes, arranges, or offers travel services and, with respect to travel insurance, is limited to offering and disseminating as defined in this Section, unless otherwise licensed under subsection (b) of Section 1635.
(Source: P.A. 102-212, eff. 10-28-21.)

215 ILCS 5/1635

    (215 ILCS 5/1635)
    Sec. 1635. Licensing and registration.
    (a) The Director may issue to a travel insurance business entity that registers travel retailers under its license as described in paragraph (2) of subsection (c) of this Section a producer license as provided in paragraph (6) of subsection (a) of Section 500-35 of this Code. A travel insurance business entity license issued under this Section shall also authorize any employee of the travel insurance business entity to act individually on behalf and under the supervision of the travel insurance business entity licensee with respect to the coverage specified in this Section. Each travel insurance business entity licensed under this Section shall pay the Department a fee of $500 for its initial license and $500 for each renewal license, payable on May 31 annually.
    (b) The Director may issue to a travel retailer a limited lines producer license. A travel retailer license issued under this Section shall also authorize any employee of the travel retailer limited line licensee to act individually on behalf and under the supervision of the travel retailer limited line licensee with respect to the coverage specified in this Section.
    (c) Notwithstanding any other provision of law, a travel retailer may do the limited activities of offering and disseminating travel insurance on behalf of and under the license of a supervising travel insurance business entity if the following conditions are met:
        (1) the travel insurance business entity or travel
    
retailer provides to purchasers of travel insurance:
            (A) a description of the material terms or the
        
actual material terms of the insurance coverage;
            (B) a description of the process for filing a
        
claim;
            (C) a description of the review or cancellation
        
process for the travel insurance policy; and
            (D) the identity and contact information of the
        
insurer and travel insurance business entity;
        (2) at the time of licensure, the travel insurance
    
business entity shall establish and maintain a register on a form prescribed by the Director of each travel retailer that offers travel insurance on the travel insurance business entity's behalf; the register shall be maintained and updated continuously by the travel insurance business entity and shall include the name, address, and contact information of the travel retailer and an officer or person who directs or controls the travel retailer's operations and the travel retailer's federal tax identification number; the travel insurance business entity shall submit the register to the Director annually on a form and in a manner approved by the Director; the limited lines producer shall also certify that the travel retailer personnel who are offering and disseminating insurance under the travel retailer's registration complies with 18 U.S.C. 1033;
        (3) the travel insurance business entity has
    
designated one of its employees as a licensed individual producer (a designated responsible producer or DRP) responsible for the travel insurance business entity's and its travel retailer's compliance with the travel insurance laws, rules, and regulations of this State;
        (4) the travel insurance business entity has paid all
    
applicable insurance producer licensing fees as set forth in this Code; and
        (5) the travel insurance business entity requires
    
each employee and authorized representative of the travel retailer whose duties include offering and disseminating travel insurance to receive a program of instruction or training that shall be subject to review by the Director; the training material shall, at a minimum, contain instructions on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers.
    (d) Any travel retailer offering or disseminating travel insurance shall make available to prospective purchasers brochures or other written materials that:
        (1) provide the identity and contact information of
    
the insurer and the travel insurance business entity;
        (2) explain that the purchase of travel insurance is
    
not required in order to purchase any other product or service from the travel retailer; and
        (3) explain that an unlicensed travel retailer is
    
permitted to provide general information about the insurance offered by the travel retailer, including a description of the coverage and price, but is not qualified or authorized to answer technical questions about the terms and conditions of the insurance offered by the travel retailer or to evaluate the adequacy of the customer's existing insurance coverage.
    (e) A travel retailer's employee or authorized representative who is not licensed as an insurance producer may not:
        (1) evaluate or interpret the technical terms,
    
benefits, and conditions of the offered travel insurance coverage;
        (2) evaluate or provide advice concerning a
    
prospective purchaser's existing insurance coverage; or
        (3) hold himself, herself, or itself out as a
    
licensed insurer, licensed producer, or insurance expert.
    (f) A travel retailer whose insurance-related activities, and those of its employees and authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a travel insurance business entity meeting the conditions stated in this Section is authorized to do so and receive related compensation upon registration by the travel insurance business entity as described in paragraph (2) of subsection (c) of this Section.
    (g) Travel insurance may be provided under an individual policy or under a group, blanket, or master policy.
    (h) As the insurer designee, the travel insurance business entity is responsible for the acts of the travel retailer that is registered under its license.
    (i) Any entity that violates any provision of this Article shall be subject to all appropriate regulatory action as set forth in this Code.
    (j) Any person licensed in a major line of authority as an insurance producer is authorized to sell, solicit, and negotiate travel insurance. A property and casualty insurance producer is not required to become appointed by an insurer in order to sell, solicit, or negotiate travel insurance.
(Source: P.A. 102-212, eff. 10-28-21.)

215 ILCS 5/1640

    (215 ILCS 5/1640)
    Sec. 1640. Travel protection plans. Travel protection plans may be offered for one price for the combined features that the travel protection plan offers in this State if:
        (1) the travel protection plan clearly discloses to
    
the consumer, at or before the time of purchase, that it includes travel insurance, travel assistance services, and cancellation fee waivers, as applicable, and provides information and an opportunity, at or before the time of purchase, for the consumer to obtain additional information regarding the features and pricing of each; and
        (2) the fulfillment materials:
            (A) describe and delineate the travel
        
insurance, travel assistance services, and cancellation fee waivers in the travel protection plan; and
            (B) include the travel insurance disclosures
        
and the contact information for persons providing travel assistance services, and cancellation fee waivers, as applicable.
(Source: P.A. 102-212, eff. 10-28-21.)

215 ILCS 5/1645

    (215 ILCS 5/1645)
    Sec. 1645. Sales practices.
    (a) All persons offering travel insurance to residents of this State are subject to the Unfair Methods of Competition and Unfair and Deceptive Acts and Practices Article of this Code, except as otherwise provided in this Section. In the event of a conflict between this Article and other provisions of this Code regarding the sale and marketing of travel insurance and travel protection plans, the provisions of this Article shall control.
    (b) Offering or selling a travel insurance policy that could never result in payment of any claims for any insured under the policy is an unfair trade practice under Section 424.
    (c) Marketing of travel insurance policies shall comply with the following:
        (1) All documents provided to consumers before the
    
purchase of travel insurance, including, but not limited to, sales materials, advertising materials, and marketing materials, shall be consistent with the travel insurance policy itself, including, but not limited to, forms, endorsements, policies, rate filings, and certificates of insurance.
        (2) For travel insurance policies or certificates
    
that contain preexisting condition exclusions, information and an opportunity to learn more about the preexisting condition exclusions shall be provided any time prior to the time of purchase, and in the coverage's fulfillment materials.
        (3) The fulfillment materials and the information
    
described in subparagraphs (A) through (D) of paragraph (1) of subsection (c) of Section 1635 shall be provided to a policyholder or certificate holder as soon as practicable following the purchase of a travel protection plan. Unless the insured has either started a covered trip or filed a claim under the travel insurance coverage, a policyholder or certificate holder may cancel a policy or certificate for a full refund of the travel protection plan price from the date of purchase of a travel protection plan until at least:
            (A) 15 days following the date of delivery of the
        
travel protection plan's fulfillment materials by postal mail; or
            (B) 10 days following the date of delivery of the
        
travel protection plan's fulfillment materials by means other than postal mail. For the purposes of this Section, delivery means handing fulfillment materials to the policyholder or certificate holder or sending fulfillment materials by postal mail or electronic means to the policyholder or certificate holder.
        (4) The company shall disclose in the policy
    
documentation and fulfillment materials whether the travel insurance is primary or secondary to other applicable coverage.
        (5) Where travel insurance is marketed directly to
    
a consumer through an insurer's website or by others through an aggregator site, it shall not be an unfair trade practice or other violation of law where an accurate summary or short description of coverage is provided on the web page, so long as the consumer has access to the full provisions of the policy through electronic means.
    (d) No person offering, soliciting, or negotiating travel insurance or travel protection plans on an individual or group basis may do so by using negative option or opt out, which would require a consumer to take an affirmative action to deselect coverage, such as unchecking a box on an electronic form, when the consumer purchases a trip.
    (e) It shall be an unfair trade practice under Section 424 to market blanket travel insurance coverage as free.
    (f) Where a consumer's destination jurisdiction requires insurance coverage, it shall not be an unfair trade practice to require that a consumer choose between the following options as a condition of purchasing a trip or travel package:
        (1) purchasing the coverage required by the
    
destination jurisdiction through the travel retailer or limited lines travel insurance producer supplying the trip or travel package; or
        (2) agreeing to obtain and provide proof of
    
coverage that meets the destination jurisdiction's requirements before departure.
(Source: P.A. 102-212, eff. 10-28-21.)

215 ILCS 5/1650

    (215 ILCS 5/1650)
    Sec. 1650. Travel insurance administrators.
    (a) Notwithstanding any other provisions of this Code, no entity shall act or represent itself as a travel administrator for travel insurance in this State unless that entity:
        (1) is a licensed property and casualty insurance
    
producer in this State for activities permitted under that producer license;
        (2) holds a valid managing general agent license in
    
this State; or
        (3) holds a valid third-party administrator license
    
in this State.
    (b) An insurer is responsible for the acts of a travel administrator administering travel insurance underwritten by the insurer, and is responsible for ensuring that the travel administrator maintains all books and records relevant to the insurer to be made available by the travel administrator to the Director upon request.
(Source: P.A. 102-212, eff. 10-28-21.)

215 ILCS 5/1655

    (215 ILCS 5/1655)
    Sec. 1655. Policy.
    (a) Notwithstanding any other provision of this Code, travel insurance shall be classified and filed for purposes of rates and forms under an inland marine line of insurance; however, travel insurance that provides coverage for sickness, accident, disability, or death occurring during travel, either exclusively, or in conjunction with related coverages of emergency evacuation or repatriation of remains, or incidental limited property and casualty benefits such as baggage or trip cancellation may be filed under either an accident and health line of insurance or an inland marine line of insurance.
    (b) Travel insurance may be in the form of an individual, group, master, or blanket policy.
    (c) Eligibility and underwriting standards for travel insurance may be developed and provided based on travel protection plans designed for individual or identified marketing or distribution channels, provided those standards also meet this State's underwriting standards for inland marine.
(Source: P.A. 102-212, eff. 10-28-21; 102-672, eff. 11-30-21.)

215 ILCS 5/1660

    (215 ILCS 5/1660)
    Sec. 1660. Rules. The Department may adopt rules to implement this Article.
(Source: P.A. 102-212, eff. 10-28-21.)

215 ILCS 5/Art. XLVII

 
    (215 ILCS 5/Art. XLVII heading)
    (This Section may contain text from a Public Act with a delayed effective date)
ARTICLE XLVII. INSURANCE BUSINESS TRANSFERS
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1701

    (215 ILCS 5/1701)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1701. Short title. This Article may be cited as the Insurance Business Transfer Law.
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1703

    (215 ILCS 5/1703)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1703. Purpose and intent. The purpose of this Article is to provide a mechanism for insurers to transfer or assume blocks of insurance business in an efficient and cost-effective manner that provides needed legal finality for such transfers in order to provide for improved operational and capital efficiency for insurance companies, while protecting the interests of the policyholders, reinsurers, and claimants of the subject business. This new process is intended to stimulate the economy by attracting segments of the insurance industry to this State, make this State an attractive home jurisdiction for insurance companies, encourage economic growth and increased investment in the financial services sector, and increase the availability of quality insurance industry jobs in this State. These purposes are accomplished by providing a basis and procedures for the transfer and statutory novation of policies from a transferring insurer to an assuming insurer by way of an insurance business transfer without the affirmative consent of policyholders or reinsureds, but with consideration of their interests. This Article establishes the requirements for notice and disclosure and standards and procedures for the approval of the transfer and novation by a court pursuant to an insurance business transfer plan. This Article does not limit or restrict other means of effecting a transfer or novation.
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1705

    (215 ILCS 5/1705)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1705. Definitions. As used in this Article:
    "Affiliate" means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the person specified.
    "Applicant" means a transferring insurer or reinsurer applying under this Article.
    "Assuming insurer" means an insurer domiciled in Illinois and authorized to transact the type of business described in clause (c) of Class 1, clauses (b) through (l) of Class 2, or Class 3 of Section 4 that seeks to assume policies from a transferring insurer pursuant to this Article.
    "Court" means the circuit court of Sangamon County or Cook County.
    "Department" means the Department of Insurance.
    "Director" means the Director of Insurance.
    "Implementation order" means an order issued by a court under this Article.
    "Insurance business transfer" means a transfer and novation that, once approved pursuant to this Article, transfers insurance obligations or risks, or both, of existing or in-force contracts of insurance or reinsurance from a transferring insurer to an assuming insurer, and effects a novation of the transferred contracts of insurance or reinsurance with the result that the assuming insurer becomes directly liable to the policyholders of the transferring insurer and the transferring insurer's insurance obligations or risks, or both, under the contracts are extinguished.
    "Insurance business transfer plan" means the plan submitted to the Department to accomplish the transfer and novation pursuant to an insurance business transfer, including any associated transfer of assets and rights from or on behalf of the transferring insurer to the assuming insurer. An "insurance business transfer plan" is limited to the types of insurance described in clause (c) of Class 1, clauses (b) through (l) of Class 2, or Class 3 of Section 4.
    "Independent expert" means the impartial person procured to assist the Director and the court in connection with their review of a proposed transaction. The independent expert shall:
        (i) have no current or past, direct or indirect,
    
financial interest in either the assuming insurer or transferring insurer or any of their respective affiliates,
        (ii) have not been employed by or acted as an
    
officer, director, consultant, or other independent contractor for either the assuming insurer or transferring insurer or any of their respective affiliates within the past 12 months,
        (iii) not currently be appointed by the Director to
    
assist in any capacity in any proceeding initiated under Article XIII, and
        (iv) receive no compensation in connection with the
    
transaction governed by this Article other than a fee based on a fixed or hourly basis that is not contingent on the approval or consummation of an insurance business transfer.
    "Insurer" means an insurance, surety, or reinsurance company, corporation, partnership, association, society, order, individual, or aggregation of individuals engaging in or proposing or attempting to engage in insurance or surety business, including the exchanging of reciprocal or inter-insurance contracts between individuals, partnerships, and corporations.
    "Policy" means a policy, certificate of insurance, or a contract of reinsurance pursuant to which an insurer agrees to assume an obligation or risk, or both, of the policyholder or to make payments on behalf of, or to, the policyholder or its beneficiaries, and includes property and casualty insurance. "Policy" does not include any policy, contract, or certificate of life, accident, or health insurance, including those defined in clause (a) or (b) of Class 1 or clause (a) of Class 2 of Section 4.
    "Policyholder" means an insured or a reinsured under a policy that is part of the subject business.
    "State guaranty association" means the Illinois Insurance Guaranty Fund, the Illinois Life and Health Guaranty Association, or any similar organization in another state.
    "Subject business" means the policy or policies that are the subject of the insurance business transfer plan.
    "Transfer and novation" means the transfer of insurance obligations or risks, or both, of existing or in-force policies from a transferring insurer to an assuming insurer that is intended to effect a novation of the transferred policies with the result that the assuming insurer becomes directly liable to the policyholders of the transferring insurer on the transferred policies and the transferring insurer's obligations or risks, or both, under the transferred policies are extinguished.
    "Transferring insurer" means an insurer or reinsurer that transfers and novates or seeks to transfer and novate obligations or risks, or both, under one or more policies to an assuming insurer pursuant to an insurance business transfer plan.
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1710

    (215 ILCS 5/1710)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1710. Court authority. Notwithstanding any other provision of law, a court may issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this Article. No provision of this Article shall be construed to preclude a court from, on its own motion, taking any action or making any determination necessary or appropriate to enforce or implement court orders or rules or to prevent an abuse of power.
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1715

    (215 ILCS 5/1715)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1715. Notice requirements.
    (a) Whenever notice is required to be given by an applicant under this Article, except as otherwise permitted by a court or the Director, the applicant shall within 15 days after the event triggering the requirement transmit the notice:
        (1) to the chief insurance regulator in each
    
jurisdiction:
            (A) in which the applicant holds or has ever held
        
a certificate of authority; and
            (B) in which policies that are part of the
        
subject business were issued or policyholders currently reside;
        (2) to the National Conference of Insurance Guaranty
    
Funds, the National Organization of Life and Health Insurance Guaranty Associations, and all state insurance guaranty associations for the states:
            (A) in which the applicant holds or has ever held
        
a certificate of authority; and
            (B) in which policies that are part of the
        
subject business were issued or policyholders currently reside;
        (3) to reinsurers of the applicant pursuant to the
    
notice provisions of the reinsurance agreements applicable to the policies that are part of the subject business or, where an agreement has no provision for notice, by internationally recognized delivery service;
        (4) to all policyholders holding policies that are
    
part of the subject business at their last known address as indicated by the records of the applicant or to the address to which premium notices or other policy documents are sent. A notice of transfer shall also be sent to the transferring insurer's agents or brokers of record on the subject business; and
        (5) by publication in a newspaper of general
    
circulation in the state in which the applicant has its principal place of business and in such other publications that the Director requires.
    (b) If notice is given in accordance with this Section, any orders under this Article shall be conclusive with respect to all intended recipients of the notice whether or not they receive actual notice.
    (c) If this Article requires that the applicant provide notice but the Director has been named receiver of the applicant pursuant to Article XIII, the Director shall provide the required notice.
    (d) Notice under this Section may take the form of first-class mail, facsimile, or electronic notice. The court may order that notice take a specific form.
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1720

    (215 ILCS 5/1720)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1720. Application procedure.
    (a) Before filing an insurance business transfer plan, the applicant shall file with the Department a notice of its intention to file a plan and shall pay the required fee. Upon request, the applicant and the assuming insurer shall provide the Department with any information necessary for the Department to procure an independent expert that meets the requirements of this Article.
    (b) An insurance business transfer plan shall be filed by the applicant with the Director for his or her review and approval. The plan may be supplemented by other information deemed necessary by the Director, and shall contain the following information or an explanation as to why the following information is not included:
        (1) the name, address, and telephone number of the
    
transferring insurer and the assuming insurer and their respective direct and indirect controlling persons, if any;
        (2) a summary of the insurance business transfer
    
plan;
        (3) an identification and description of the subject
    
business;
        (4) the most recent audited financial statements and
    
statutory annual and quarterly reports of the transferring insurer and the assuming insurer filed with their domiciliary regulator;
        (5) the most recent actuarial report and opinion that
    
quantify the liabilities associated with the subject business;
        (6) pro forma financial statements showing the
    
projected statutory balance sheet, results of operation, and cash flows of the assuming insurer for the 3 years following the proposed transfer and novation;
        (7) officers' certificates of the transferring
    
insurer and the assuming insurer attesting that each has obtained all required internal approvals and authorizations regarding the insurance business transfer plan and completed all necessary and appropriate actions relating thereto;
        (8) a proposal for plan implementation and
    
administration, including the form of notice to be provided under the insurance business transfer plan to any policyholder whose policy is part of the subject business;
        (9) a full description as to how notice under the
    
insurance business transfer plan shall be provided;
        (10) a description of any reinsurance arrangements
    
that would pass to the assuming insurer under the insurance business transfer plan;
        (11) a description of any guarantees or additional
    
reinsurance that will cover the subject business following the transfer and novation;
        (12) a statement describing the assuming insurer's
    
proposed investment policies and any contemplated third-party claims management and administration arrangements;
        (13) a description of how the transferring and
    
assuming insurers will be licensed for the purpose of preserving state guaranty association coverage;
        (14) a description of the financial implications of
    
the transaction including solvency, capital adequacy, cash flow, reserves, asset quality, and risk-based capital;
        (15) an analysis of the assuming insurer's
    
corporate governance structure to ensure that there is proper board management oversight and expertise to manage the subject business;
        (16) an evaluation of the competency, experience, and
    
integrity of the persons who would control the operation of an involved insurer;
        (17) a certified statement that the transaction is
    
not being made for improper purposes, including fraud;
        (18) evidence of approval or nonobjection of the
    
transfer from the chief insurance regulator of the state of the transferring insurer's domicile; and
        (19) a report from the independent expert that shall
    
provide the following:
            (A) a statement of the independent expert's
        
professional qualifications and descriptions of the experience that qualifies him or her as an expert suitable for the engagement;
            (B) a certified statement from the independent
        
expert that he or she meets the standards for an independent expert under this Article;
            (C) a description of the scope of the report;
            (D) a summary of the terms of the insurance
        
business transfer plan to the extent relevant to the report;
            (E) a listing and summaries of documents,
        
reports, and other material information the independent expert has considered in preparing the report and whether any information requested was not provided;
            (F) the extent to which the independent expert
        
has relied on information provided by or judgment of others;
            (G) the people on whom the independent expert has
        
relied and why, in his or her opinion, such reliance is reasonable;
            (H) the independent expert's opinion of the
        
likely effects of the insurance business transfer plan on policyholders, reinsurers, and claimants, distinguishing between:
                (i) transferring policyholders, reinsurers,
            
and claimants;
                (ii) policyholders, reinsurers, and claimants
            
of the transferring insurer whose policies will not be transferred; and
                (iii) policyholders, reinsurers, and
            
claimants of the assuming insurer;
            (I) the facts and circumstances supporting each
        
opinion that the independent expert expresses in the report; and
            (J) consideration as to whether the security
        
position of policyholders that are affected by the insurance business transfer are materially adversely affected by the transfer, including, but not limited to, state guaranty association coverage.
    (c) The independent expert's report as required by paragraph (19) of subsection (b) shall also include, but not be limited to, a review of and report on the following:
        (1) analysis of the transferring insurer's actuarial
    
review of resources for the subject business to determine the reserve adequacy;
        (2) analysis of the financial condition of the
    
transferring and assuming insurers and the effect the transfer will have on the financial condition of each company;
        (3) review of the plans or proposals the assuming
    
insurer has with respect to the administration of the policies subject to the proposed transfer;
        (4) whether the proposed transfer has a material,
    
adverse impact on the policyholders, reinsurers, and claimants of the transferring and the assuming insurers;
        (5) analysis of the assuming insurer's corporate
    
governance structure to ensure that there is proper board and management oversight and expertise to manage the subject business;
        (6) analysis of whether any policyholder or group of
    
policyholders will lose or gain state guaranty association coverage as a result of the transaction; and
        (7) any other information that the Director requests
    
in order to review the insurance business transfer.
    (d) After the receipt of a complete insurance business transfer plan, the Director shall review the plan to determine if the applicant is authorized to submit it to a court.
    (e) The Director shall authorize the submission of the insurance business transfer plan to a court unless he or she finds that the insurance business transfer would have a material adverse impact on the interests of policyholders, reinsurers, or claimants that are part of the subject business.
    (f) If the Director determines that the insurance business transfer would have a material adverse impact on the interests of policyholders, reinsurers, or claimants that are part of the subject business, he or she shall notify the applicant and specify any modifications, supplements, or amendments and any additional information or documentation with respect to the plan that must be provided to the Director before he or she shall allow the applicant to proceed with the court filing.
    (g) The applicant shall have 30 days following the date the Director notifies him or her of a determination under subsection (f) to file an amended insurance business transfer plan providing the modifications, supplements, or amendments and additional information or documentation as requested by the Director. If necessary, the applicant may request in writing an extension of time of 30 days. If the applicant does not make an amended filing within the time period provided in this subsection, including any extension of time granted by the Director, the insurance business transfer plan filing shall terminate and a subsequent filing by the applicant shall be considered a new filing which shall require compliance with all provisions of this Article as if the prior filing had never been made.
    (h) When the modification, supplement, amendment, or additional information requested in subsection (f) is received, the Director shall review the amended plan in accordance with subsection (c).
    (i) If the Director determines that the plan may proceed with the court filing, the Director shall confirm that fact in writing to the applicant.
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1725

    (215 ILCS 5/1725)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1725. Application to the court for approval of a plan.
    (a) Within 30 days after notice from the Director that the applicant may proceed with the court filing, the applicant shall apply to the court for approval of the insurance business transfer plan. Upon written request by the applicant, the Director may extend the period for filing an application with the court for an additional 30 days.
    (b) The applicant shall inform the court of the reasons why he or she petitions the court to find no material adverse impact to policyholders, reinsurers, or claimants affected by the proposed transfer.
    (c) The application shall be in the form of a verified petition for implementation of the insurance business transfer plan in the court. The petition shall include the insurance business transfer plan and shall identify any documents and witnesses which the applicant intends to present at a hearing regarding the petition.
    (d) The Director shall be a party to the proceedings before the court concerning the petition and shall be served with copies of all filings. The Director's position in the proceeding shall not be limited by his or her initial review of the plan. The Director shall have all the rights of a litigant under the Illinois Supreme Court Rules and the Code of Civil Procedure, including, but not limited to, the right to appeal.
    (e) Following the filing of the petition, the applicant shall file a motion for a scheduling order setting a hearing on the petition.
    (f) Within 15 days after receipt of the scheduling order, the applicant shall cause notice of the hearing to be provided in accordance with the notice provisions of Section 1715. Following the date of distribution of the notice, there shall be a 60-day comment period. The notice and all comments received shall be part of the court record.
    (g) The notice shall be filed with and approved by the court before distribution, and the Director shall be given the opportunity to review and comment on the sufficiency of the notice before court approval. The notice shall state or provide:
        (1) the date and time of the approval hearing;
        (2) the name, address, and telephone number of the
    
assuming insurer and transferring insurer;
        (3) that the recipient may comment on or object to
    
the transfer and novation;
        (4) the procedures and deadline for submitting
    
comments or objections on the plan;
        (5) a summary of any effect that the transfer and
    
novation will have on the policyholder's rights;
        (6) a statement that the assuming insurer is
    
authorized to assume the subject business and that court approval of the plan shall extinguish all rights of policyholders under policies that are part of the subject business against the transferring insurer;
        (7) a statement regarding whether any policyholder
    
or group of policyholders may or will lose or gain state guaranty association coverage as a result of the transfer and the implication of losing or gaining state guaranty association coverage;
        (8) that recipients shall not have the opportunity to
    
opt out of or otherwise reject the transfer and novation;
        (9) contact information for the Department where
    
the policyholder may obtain further information;
        (10) information on how an electronic copy of the
    
insurance business transfer plan may be accessed. If policyholders are unable to readily access electronic copies, the applicant shall provide hard copies by first-class mail; and
        (11) any other information that the court may
    
require.
    (h) Any person, including by their legal representative, who considers himself, herself, or itself to be adversely affected can present evidence or comments to the court at the approval hearing. Any person participating in the approval hearing must follow the process established by the court and shall bear his or her own costs and attorney's fees.
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1730

    (215 ILCS 5/1730)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1730. Approval; denial; insurance business transfer plans.
    (a) After the comment period pursuant to subsection (f) of Section 1725 has ended the insurance business transfer plan shall be presented by the applicant for approval by the court.
    (b) At any time before the court issues an order approving the insurance business transfer plan, the applicant may withdraw the petition without prejudice.
    (c) If the court finds that the implementation of the insurance business transfer plan would not materially adversely affect the interests of policyholders, reinsurers, or claimants that are part of the subject business, the court shall enter a judgment and implementation order. The judgment and implementation order shall:
        (1) order implementation of the insurance business
    
transfer plan;
        (2) order a statutory novation with respect to all
    
policyholders or reinsureds and their respective policies and reinsurance agreements under the subject business, including the extinguishment of all rights of policyholders under policies that are part of the subject business against the transferring insurer, and providing that the transferring insurer shall have no further rights, obligations, or liabilities with respect to such policies, and that the assuming insurer shall have all such rights, obligations, and liabilities as if it were the original insurer of such policies;
        (3) release the transferring insurer from all
    
obligations or liabilities under policies that are part of the subject business;
        (4) authorize and order the transfer of property
    
or liabilities, including, but not limited to, the ceded reinsurance of transferred policies and contracts on the subject business, notwithstanding any non-assignment provisions in any such reinsurance contracts. The subject business shall vest in and become liabilities of the assuming insurer;
        (5) order that the applicant provide notice of the
    
transfer and novation in accordance with the notice provisions in Section 1715; and
        (6) make such other provisions with respect to
    
incidental, consequential, and supplementary matters as are necessary to assure the insurance business transfer plan is fully and effectively carried out.
    (d) If the court finds that the insurance business transfer plan should not be approved, the court by its order shall deny the petition.
    (e) The applicant shall have 30 days following the withdrawal or denial of the petition to file an amended business transfer plan with the Director in accordance with Section 1720.
    (f) Nothing in this Section in any way affects the right of appeal of any party.
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1735

    (215 ILCS 5/1735)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1735. Rules. The Department may adopt rules that are consistent with the provisions of this Article.
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1740

    (215 ILCS 5/1740)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1740. Confidentiality. The portion of the application for an insurance business transfer that would otherwise be confidential, including any documents, materials, communications, or other information submitted to the Director in contemplation of such application, shall not lose such confidentiality, except (i) the Director may disclose confidential information as needed to procure the independent expert and ensure that the expert meets the requirements under this Article and (ii) if the Director determines that disclosure of confidential information is necessary to fully and fairly advise policyholders and others entitled to notice of the material implications of the insurance business transfer plan.
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1745

    (215 ILCS 5/1745)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1745. Department oversight. Insurers engaging in an insurance business transfer under this Article consent to the jurisdiction of the Director with regard to any aspect of the transferred business or business transfer plan, including the authority of the Director to conduct financial analysis and examinations, regardless of whether the insurer has a certificate of authority or another basis for the Director's jurisdiction exists.
(Source: P.A. 103-75, eff. 1-1-25.)

215 ILCS 5/1750

    (215 ILCS 5/1750)
    (This Section may contain text from a Public Act with a delayed effective date)
    Sec. 1750. Fees and costs.
    (a) All expenses incurred by the Director for the compensation, costs, and expenses of the independent expert and any consultants retained by the independent expert incurred in fulfilling the obligations of the independent expert under this Article shall be paid by the applicant.
    (b) The Director may retain the services of any attorneys, actuaries, accountants, and other professionals and specialists as may be reasonably necessary to assist the Director in reviewing the insurance business transfer plan. All expenses incurred by the Director in connection with proceedings under this Article, including, but not limited to, expenses for the services of any attorneys, actuaries, accountants, and other professionals and specialists, shall be paid by the applicant.
    (c) The transferring insurer and the assuming insurer shall jointly be obligated to pay all debts incurred pursuant to this Section. Nothing in this Article shall be construed to create any duty for the independent expert to any party other than the Department or a court.
    (d) Failure to pay any of the requisite fees or costs within 30 days after demand shall be grounds for the Director to request that a court dismiss the petition for approval of the insurance business transfer plan before the filing of an implementation order by the court or, if after the filing of an implementation order, the Director may suspend or revoke the assuming insurer's certificate of authority to transact insurance business in this State. The Director may also take any other action authorized by law against an insurer who fails to pay the requisite fees or costs.
(Source: P.A. 103-75, eff. 1-1-25.)